This marks AB InBev’s final disinvestment following its acquisition of SABMiller. Subject to regulatory approvals, this deal is set to close by the end of 2017.
In a development that underscores AB In-Bev’s push to consolidate its acquisition of SABMiller, the world’s largest beer manufacturer has disclosed that it has agreed to sells its majority stake in Africa’s largest bottling plant to Coca Cola Company for $3.15 billion.
In a joint statement, AB In-Bev and Coca Cola said that they had agreed to transfer AB InBev’s 54.5% stake to Coca-Cola Beverages (CCBA).
CCBA has operations in Mayotte, South Africa, Uganda, Namibia, Ethiopia, Kenya, Comoros, Tanzania, Ghana and Mozambique.
Significantly, both companies have also agreed, in principle, that Coca Cola will acquire AB InBev’s stake in bottling plants in Swaziland, Zambia, Botswana, Zimbabwe, Lesotho, Honduras and El Salvador for an undisclosed amount.
These deals, subject to relevant regulatory and minority approvals, are expected to close by the end of 2017.
Coca Cola has disclosed that it plans on putting all of its operations on temporary hold till they can be re-franchised to other partners, including, Coca Cola European Partners and Coca Cola Hellenic.
So far, the bottling giant has raised nearly $27 billion from disinvestment of SABMiller’s U.S., European, and Chinese interests; in the process it has recouped more than a quarter of the $97.7 billion (79 billion pounds) it paid to SABMiller, the world’s second largest brewer.
In October, Coca-Cola Co had stated it would exercise its right to purchase AB InBev’s stake in Africa’s CCBA and in the process help AB-InBev takeover of SABMiller.
AB InBev is a major bottler of Coke in Latin America.