Aboitiz Group set to acquire CCBPI early next year

MANILA, Philippines — Cebu-based conglomerate Aboitiz Group has moved a step closer to acquiring Coca-Cola Beverages Philippines Inc.(CCBPI).

This, as Aboitiz Equity Ventures (AEV) has signed a definitive agreement with its partner Coca-Cola Europacific Partners PLC (CCEP).

The transaction, which is expected to close in the first quarter of 2024, continues the buying binge of the Aboitiz Group, which has been adding companies and entities to its portfolio of acquired companies.

These include Gold Coin, Citigroup’s consumer banking business in the Philippines, and a controlling stake in the company behind the Mactan-Cebu International Airport.

A holding company that is 60 percent owned by CCEP and 40 percent owned by AEV will acquire CCBPI.

The two partners will buy 100 percent of CCBPI from Atlanta-based The Coca-Cola Co. (TCCC) for $1.8 billion on a debt-free cash-free basis, consistent with TCCC’s goal to divest its bottling operations.

Once completed, the proposed acquisition would build on AEV’s portfolio diversification strategy to enter the branded consumer goods space and on CCEP’s successful expansion into the Asia-Pacific region via its acquisition of Coca-Cola Amatil in 2021.

“AEV would be well positioned to support CCBPI’s growth ambition given the synergies that can be generated from AEV’s other businesses,” the Cebu-based conglomerate said.

However, the proposed acquisition will still be subject to closing conditions, including clearance from the Philippine Competition Commission.

The business will be governed by a board of five members, three appointed by CCEP and two by AEV. CCEP will also appoint the CEO.

CCEP bottles and sells Coca-Cola products in Western Europe, Australia and New Zealand while AEV has major investments in power, banking and financial services, food, infrastructure, land, and data science and artificial intelligence.

It is one of the leading consumer goods companies in the world, serving 600 million consumers and helping two million customers across 30 countries grow their business.

The company is listed on Euronext Amsterdam, the NASDAQ Global Select Market, London Stock Exchange and on the Spanish Stock Exchanges.

AEV, which has a history of over a hundred years in the Philippines, has investments in power, banking and financial services, food, infrastructure, land, and data science and artificial intelligence.

It is on its so-called Great Transformation journey to become the Philippines’ first techglomerate by advancing business and communities.