The Australian and European distributors of Coca-Cola are set to merge into a single entity after Coca-Cola European Partners lodged an offer for Coca-Cola Amatil (CCA), valuing the business at A$9.28 billion.
The bid – which is non-binding – would see the European company buy the 69.2 percent stake of CCA which is not owned by The Coca-Cola Company (TCCC), the original US business. CCA is one of the region’s largest bottlers and distributors of ready-to-drink non-alcoholic beverages, liquor, and coffee in the Asia-Pacific. Besides the Australasian market, it has a heavy presence in Indonesia and the Pacific Islands.
Coca-Cola said it would ultimately drive sustainable and faster growth through geographic diversification and scale. The proposed merger would create a broader and more balanced footprint for the European business while almost doubling its consumer market.