Aboitiz and partner finalized $1.8 billion acquisition of Coca-Cola Philippines
Aboitiz Equity Ventures Inc. (AEV) and Coca-Cola Europacific Partners Plc (CCEP) have successfully finalized their acquisition of Coca-Cola Beverages Philippines Inc. (CCBPI) from The Coca-Cola Company (TCCC), marking a significant milestone in the beverage industry. The deal, valued at $1.8 billion, underscores the strategic vision of both AEV and CCEP to expand their presence in the Philippine market.
CCBPI holds a pivotal position as the exclusive bottler and distributor of TCCC products in the Philippines, a market with promising growth opportunities. AEV, in a statement, emphasized the profitability of CCBPI and highlighted its optimistic outlook for future growth. The acquisition received approval from the Philippine Competition Commission (PCC), paving the way for the transaction to proceed smoothly.
As per the terms of the agreement, CCEP now holds a 60 percent stake in CCBPI, while AEV possesses the remaining 40 percent ownership interest. The valuation of CCBPI at $1.8 billion, on a debt-free, cash-free basis, reflects the robust potential and value of the company within the Philippine market landscape.
AEV views the acquisition as a strategic move to diversify its portfolio into the branded consumer goods sector. With its established presence and extensive business interests in the Philippines, AEV is well-positioned to support CCBPI’s growth trajectory. The synergies anticipated from AEV’s diversified business portfolio are expected to further enhance CCBPI’s operational efficiency and market penetration.
Moreover, AEV’s acquisition aligns with CCEP’s broader strategic initiatives, particularly its successful expansion endeavors in the Australia, Pacific & Indonesia (API) region in 2021. The collaboration between AEV and CCEP signifies a shared commitment to driving growth and innovation in the beverage industry across diverse geographical markets.
AEV financed a portion of its 40 percent interest acquisition in CCBPI through the proceeds from its recent bond issuance totaling P17.45 billion, with an oversubscription option of up to P7.45 billion. This bond issuance represents the second tranche of AEV’s P30-billion Shelf Registration under its 2022-2025 Debt Securities Program. The funds raised will primarily be utilized to refinance existing obligations, including the repayment of P6.85 billion in bonds maturing on Nov. 16, 2023, and to partially fund the acquisition of its equity interest in CCBPI.
Overall, the completion of the acquisition underscores AEV and CCEP’s strategic focus on strengthening their market presence, driving sustainable growth, and delivering long-term value to stakeholders. The combined expertise and resources of both entities are poised to unlock new opportunities and reshape the beverage landscape in the Philippines and beyond.
Business News: Aboitiz and partner finalized $1.8 billion acquisition of Coca-Cola Philippines
