In a significant move within the beverages industry, Aboitiz Equity Ventures Inc. (AEV) and Coca-Cola Europacific Partners Plc (CCEP) have finalized their acquisition of Coca-Cola Beverages Philippines Inc. (CCBPI) for $1.8 billion on a debt-free and cash-free basis. This strategic acquisition, initially announced in August 2023, has now been completed, marking a notable shift in the ownership structure of CCBPI, with CCEP holding a 60% stake and AEV owning the remaining 40%.
The acquisition, which was finalized following a definitive agreement in November last year, received clearance from the Philippine Competition Commission early this February, paving the way for this transformative deal in the Philippine beverage sector. CCBPI, the exclusive bottler and distributor of Coca-Cola products in the Philippines, is recognized for its profitability and promising growth prospects.
This acquisition aligns with AEV’s strategy to diversify its portfolio into the branded consumer goods space, leveraging potential synergies with its other business interests in the country to bolster CCBPI’s growth ambitions. Similarly, for CCEP, this acquisition is part of its broader expansion strategy, following its successful ventures into Australia, Pacific, and Indonesia (API) in 2021.
The transition of ownership comes after The Coca-Cola Co. took control of CCBPI in 2018, following Coca-Cola FEMSA’s decision to divest its majority stake. Coca-Cola FEMSA’s exit from the Philippine market was not explicitly explained, though it occurred in the context of workforce reductions related to the Tax Reform for Acceleration and Inclusion (TRAIN) Act, which introduced new excise taxes on sweetened beverages.
This acquisition not only signifies a substantial investment in the Philippine beverage industry but also underscores the confidence of AEV and CCEP in the market’s growth potential and CCBPI’s strategic role within it.
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