Aboitiz, CCEP complete $1.8 billion Coca-Cola Beverages PH acquisition

Conglomerate Aboitiz Equity Ventures Inc. (AEV) and Coca-Cola Europacific Partners Plc (CCEP) completed their acquisition of Coca-Cola Beverages Philippines Inc. (CCBPI).

AEV announced the development in a Friday statement.

AEV and CCEP would acquire CCBPI from The Coca-Cola Company for $1.8 billion on a debt-free and cash-free basis.

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

AEV first announced its plan to acquire CCBPI —the exclusive bottler and distributor of Coca-Cola products in the Philippines— in August 2023.

AEV and CCEP entered into a definitive agreement for CCBPI's acquisition in November last year.

The transaction was also cleared by the Philippine Competition Commission early this month.

AEV said CCBPI was “profitable and has attractive growth prospects.”

“The acquisition would build on AEV’s portfolio diversification into the branded consumer goods space. AEV is well-positioned to support CCBPI’s growth ambition through the synergies which could be generated from AEV’s other business interests in the country,” the company said.

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

CCBPI 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. — DVM, GMA Integrated News