The Aboitiz Group, a Filipino conglomerate, is set to acquire Coca-Cola Beverages Philippines (CCBPI) for $1.8 billion. According to the agreement currently awaiting regulatory approval, the Coca-Cola bottling business CCEP would gain a 60% share in CCBPI, with the Aboitiz Group holding the other 40%.
The acquisition would give the Aboitiz Group a significant presence in the beverage business in the Philippines. CCBPI has a market share of over 50%, making it the largest Coca-Cola bottler in the country. The company produces and markets a variety of Coca-Cola goods, including Sprite, Fanta, and Coca-Cola.
The Aboitiz Group has an extensive legacy in the beverage industry. Summit Natural Drinking Water is one of the company’s existing beverage products. The acquisition of CCBPI would increase the group’s industry presence.
The deal is part of the Aboitiz Group’s broader diversification strategy. The company wants to expand into new industries, such as consumer goods and technology. The acquisition of CCBPI would give the group a solid platform to grow its beverage business in the Philippines.
The deal is expected to close later this year.
Altogether, the acquisition is a positive development for the Aboitiz Group. The agreement would give the group a solid platform for them to grow their beverage business in the country. Thus it will help its diversification goals.