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South Africa: Antitrust regulator gives SABMiller deal preliminary approval

 |  December 17, 2015

SABMiller and Coca-Cola’s proposed deal to combine their operations that mix, bottle and distribute soft drinks in Africa, cleared a major hurdle on Thursday after South Africa’s competition watchdog gave its preliminary approval.

SABMiller and Coca-Cola agreed in November 2014 to team up to create the continent’s largest soft drinks bottler, a group with annual sales of $2.9 billion and ambitions to corner a fast-growing market.

The group, Coca-Cola Beverages Africa, will account for 40 percent of all Coke volumes sold in Africa, serving 12 southern and eastern African countries.

Coca-Cola Beverages Africa will be headquartered in South Africa, its largest market. South Africa’s Competition Commission said the deal can go ahead on several conditions that include the enlarged group limiting job cuts to 250 and making sure it purchases cans, glass, sugar and crates from local suppliers.

Full content: Reuters

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