Europeans in talks to acquire Coca-Cola Amatil
The European arm of Coca-Cola, the world’s largest independent soft drink bottler, is in talks to acquire Australia’s Coca-Cola Amatil to expand in Asia Pacific, according to people familiar with the matter.
Negotiations between the European and Australian bottlers are advanced and could be announced within days, said the people, who asked not to be identified because the matter isn’t public. Details, including on the structure of the deal, are still being finalised and talks could yet fall apart, the people said.
Coca-Cola Amatil, based in North Sydney, has a market value of about $7.8 billion. Trading in its shares was halted on October 23 pending an announcement on a “potential material transaction.” British based Coca-Cola European Partners has a market value of about US$17.7 billion.
A representative for Coca-Cola European Partners couldn’t be immediately reached, while Coca-Cola Amatil declined to comment.
The talks underscore how soft drink bottlers are under pressure to consolidate as the popularity of sugary drinks declines, as well as because of the disruptions caused by the coronavirus pandemic. Coca-Cola European Partners decided early this year to halt its buyback program and defer a dividend to preserve cash.
Coca-Cola European Partners is interested in a majority acquisition of Coca-Cola Amatil, though some of the people said it’s also previously discussed asset purchases.
Coca-Cola European Partners is the world’s largest Coca-Cola bottler by revenue, with 48 production sites in Germany, Spain, Great Britain and elsewhere, according to a fact sheet on its website.
Coca-Cola Amatil is a dominant player in the Asia Pacific region, with 32 production facilities in Australia, New Zealand, Fiji, Indonesia and Papua New Guinea, according to its website.
The company has been named as a potential bidder for Australian liquor assets being sold by Japan’s Asahi Group Holdings, which could require a capital raise, according to analysts at Citigroup Inc.
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