Aboitiz, CCEP acquiring Coca-Cola Beverages Philippines for $1.8B

Conglomerate Aboitiz Equity Ventures Inc. (AEV) on Wednesday announced its plan to acquire Coca-Cola Beverages Philippines Inc. (CCBP) together with Coca-Cola Europacific Partners PLC (CCEP).

In a disclosure to the Philippine Stock Exchange, AEV said the company and CCEP have entered into a non-binding letter of intent with US-based The Coca-Cola Company (TCCC), “setting out the terms on which AEV and CCEP propose to acquire TCCC’s 100% ownership in CCBP at an enterprise value of $1.8 billion on a debt-free cash-free basis, consistent with TCCC’s stated intent to divest its bottling operations.”

AEV added that it has signed a non-binding term sheet and is in advanced discussions with CCEP regarding a potential joint transaction, which may lead to the acquisition of CCBP from TCCC.

The resulting ownership structure of CCBP would be 60:40 between CCEP and AEV.

“If completed, the proposed acquisition would build on AEV’s portfolio diversification strategy to enter the branded consumer goods space... AEV would be well positioned to support CCBP’s growth ambition given the synergies that can be generated from AEV’s other businesses,” the company said.

CCBP, which was taken over by The Coca-Cola Company from Mexico-based franchise bottler Coca-Cola FEMSA, is engaged in the bottling and distribution of Coca-Cola products in the Philippines.

CCBPI forms part of TCC’s The Bottling Investment Group.

“AEV’s proposed acquisition of CCBP, with CCEP, offers a great opportunity to co-acquire an established, well-run business with attractive profitability and growth prospects,” the company said.

“The proposed acquisition is subject to a number of conditions, including satisfactory completion of confirmatory due diligence which is well underway, receipt of AEV and CCEP’s board approvals, and the parties signing the definitive agreements,” it added.

AEV noted that there is no certainty “at this stage,” that the proposed acquisition of CCBP will be completed, and as such, further updates will be provided in due course.

“Currently, assuming the definitive agreements will be agreed and executed, the potential transaction is expected to close around the end of fiscal year 2023, subject to the receipt of certain governmental and regulatory approvals, including clearance from the Philippine Competition Commission,” it said. — BM, GMA Integrated News