AEV, CCEP enter definitive deal for Coca-Cola Beverages PH acquisition

Aboitiz Equity Ventures (AEV) on Monday said it, along with Coca-Cola Europacific Partners Plc. (CCEP), has entered into a definitive agreement to jointly acquire Coca-Cola Beverages Philippines Inc. (CCBPI) at a $1.8-billion valuation.

The latest development comes after AEV in August announced its plan to acquire CCBP as part of its portfolio diversification strategy to enter the branded consumer goods space.

Under the proposed acquisition, AEV and CCEP would acquire CCBPI from The Coca-Cola Company on a debt-free, cash-free basis, with the final consideration subject to cash, debt-like items, and working capital adjustments.

The resulting ownership structure of CCBPI would be 60:40 between CCEP and AEV, subject to customary closing conditions including the clearance of the antitrust watchdog the Philippine Competition Commission (PCC).

“AEV is well positioned to support CCBPI’s growth ambition due to the synergies which could be generated from AEV’s other business interests in the country,” the Aboitiz-led company said in an emailed statement.

“The proposed acquisition would also build on CCEP’s successful expansion into Australia, Pacific & Indonesia in 2021,” it added.

CCBPI, which is engaged in the bottling and distribution of Coca-Cola products in the Philippines, was taken over by The Coca-Cola Co. in 2018 after Mexico-based franchise bottler Coca-Cola FEMSA decided to sell its majority stake in the firm.

Coca-Cola FEMSA did not specify its reason for exiting the Philippines, but the company earlier reduced its workforce in light of the passage of the Tax Reform for Acceleration and Inclusion (TRAIN) Act in 2017, which mandates a P6 per liter excise tax on beverages using caloric and non-caloric sweeteners and P12 per liter on beverages using high-fructose corn syrup. —KBK, GMA Integrated News