SABMiller and Coca-Cola join forces
The Competition Commission has reportedly given preliminary approval to SABMiller and Coca-Cola’s proposed deal to combine their operations, which currently mix, bottle and distribute soft drinks across the African continent.
The Competition Commission did, however, stipulate certain conditions, including that the newly enlarged group ensures it purchases cans, glass, sugar and crates from local suppliers, and also limits job cuts to 250.
The deal, which would result in the creation of Africa's largest soft drinks bottler, will also result in Coca-Cola acquiring a further 20 brands, including Appletiser. The newly formed group, Coca-Cola Beverages Africa, will account for 40% of all coke volumes sold in Africa and, according to reports, also enjoy annual sales of $2.9 billion.