Coke seals acquisition of San Miguel bottling unit

(Update) The Coca-Cola Co. on Thursday completed its purchase of San Miguel Corp.’s 65 percent stake in Coca-Cola Bottlers Philippines Inc. (CCBPI) for $590 million. In a joint statement released to the media, the firms said the purchase makes Coca-Cola the sole owner of the Philippine bottler, which also controls Cosmos Bottling Company and Philippine Beverages Partners, Inc. "Our partnership with San Miguel Corporation over the years has been extremely important to our business in the Philippines...we look forward to continued cooperation with San Miguel, who will remain a key supplier to our business," Coca-Cola president and chief operating officer Muhtar Kent said in the statement. With the completion of the deal, Coca-Cola's Bottling Investment Group takes over the operations of the local bottler. For its part, San Miguel said the deal will streamline its operations. "The sale of Coca-Cola Bottlers Philippines, Inc. supports our company's more focused business model, emphasizing fully-owned branded positions," San Miguel chairman Eduardo Cojuangco Jr. said in the statement. San Miguel said it would develop its own beverage unit, San Miguel Beverages Inc., which would produce juice and tea drinks. The deal with Coca-Cola has a non-compete clause preventing San Miguel from manufacturing carbonated soft drinks, sports drinks, energy drinks and flavored water within five years from the transaction.-GMANews.TV