(Sharecast News) - Coca-Cola HBC is to significantly ramp up its presence across Africa, the drinks giant announced on Tuesday, after agreeing to acquire one of the global brand's biggest bottling partners.
Under the terms of the deal, the London-listed drinks firm will buy a 75% stake in Coca-Cola Beverages Africa (CCBA) for $2.6bn, valuing the Johannesburg-based business at $3.4bn.

It will also enter into an option agreement to buy the remaining 25% from CCBA's owners, The Coca-Cola Company and Gutsche Family Investments (GFI), once the deal completes, and pursue a secondary listing on the Johannesburg Stock Exchange.

The tie-up will create the second-largest Coca-Cola bottling partner by volume globally, with leading positions across Africa and Europe, CCH said.

CCBA currently operates in 14 African markets, representing around 40% of Coca-Cola system volumes sold across the continent.

Zoran Bogdanovic, CCH chief executive, said: "Having established our business in Nigeria nearly 75 years ago, and with our successful acquisition and integration of the Egypt business three years ago, we have a deep understanding of the compelling proposition Africa presents.

"It has a sizeable and growing consumer base, and there are significant opportunities to increase per capital consumption."

CCH also posted third-quarter numbers on Tuesday, showing organic revenue growth of 5% and volume growth of 1.1%, led by strong performances in its sparkling and energy divisions

Looking to the full year, CCH reaffirmed its full-year guidance.

The blue chip is currently forecasting organic revenue growth at the top of between 6% to 8%, and organic growth in earnings before interest and tax at the top of between 7% to 11%.

It said that while the macroeconomic and geopolitical backdrop was set to remain "challenging and unpredictable", it continued to have "high confidence" in the business.

• News Channel