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Coca-Cola bottler CCEP intends to acquire Coke's Philippines business for $1.8 billion

Published 08/02/2023, 04:13 AM
Updated 08/02/2023, 10:55 AM
© Reuters. FILE PHOTO: A detail of a can of Coca-Cola is seen in London, Britain March 16, 2016. REUTERS/Stefan Wermuth/File Photo
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(Reuters) - Coca-Cola (NYSE:KO) Europacific Partners said on Wednesday it intends to jointly acquire Coca-Cola Beverages Philippines with Aboitiz Equity Ventures (AEV) for $1.8 billion, in an effort to become the world's largest Coca-Cola bottler by revenue and volumes.

The deal to buy Coca-Cola's Philippines business in cash will be on 60:40 ownership structure between CCEP and Philippines conglomerate Aboitiz.

© Reuters. FILE PHOTO: A detail of a can of Coca-Cola is seen in London, Britain March 16, 2016. REUTERS/Stefan Wermuth/File Photo

CCEP has signed a non-binding term sheet and is in advanced discussions with AEV regarding a potential joint transaction, the company said in a statement.

CCEP, which bottles and sells Coca-Cola products in Western Europe, Australia and New Zealand, also said that its earlier expectation to return to the top-end of its net debt to adjusted core profit range of 2.5-3 times by the end of 2023 is expected to be achieved in 2024 instead.

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