South Africa Approves SABMiller, Coca-Cola Bottling Deal
May 10 2016 - 12:54PM
Dow Jones News
By Olga Cotaga
LONDON--SABMiller PLC (SAB.LN) Tuesday said the South African
Competition Tribunal has approved a deal to combine the African
soft drink operations of SABMiller, the Coca-Cola Company (KO) and
Gutsche Family Investments, the South African owners of local
bottler Coca-Cola Sabco.
The manufacturer, distributor and seller of beverages said the
approval of the newly created Coca-Cola Beverages Africa will
create the continent's largest soft-drink beverage operation.
The tribunal's approval of the merger follows agreements reached
between the merger parties and the South African government, unions
and the competition commission, the company said.
SABMiller said the merger parties have agreed to invest 800
million South African rand ($56.1 million) to support enterprise
development for two groups of entrepreneurs. They will also create
a ZAR400 million fund for enterprise development in the agriculture
value chain, to support and train historically disadvantaged
developing farmers and small suppliers, SABMiller said.
The parties will also make a ZAR400 million investment to
develop downstream distribution and retail aspects of Coca-Cola
Beverages South Africa, the company said.
Shares closed at 4217.50 pence valuing the company at 68.38
billion pounds ($100.06 billion).
Write to Olga Cotaga at olga.cotaga@wsj.com, Twitter
@OlgaCotaga
(END) Dow Jones Newswires
May 10, 2016 12:39 ET (16:39 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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