A formal agreement has been reached between Aboitiz Equity Ventures (AEV) and Coca-Cola Europacific Partners Plc. (CCEP) to acquire Coca-Cola Beverages Philippines, Incorporated (CCBPI) from The Coca-Cola Company for US$1.8 billion.

As outlined in the Share Purchase Agreement (SPA) of the partnership, CCEP and AEV will collectively purchase all shares of CCBPI. The agreement specifies a divided ownership structure of 60:40. Following the split, CCEP will hold 60% of the business, leaving AEV with 40%.

The agreement also includes detailed governance mechanisms between CCEP and AEV, which, according to the two companies, are designed to establish an organized and balanced approach to management.

CCBPI is the exclusive bottler and distributor of The Coca-Cola Company in the Philippines. Initially serving as the domestic soft-drink division of San Miguel Corporation since 1927, CCBPI (formerly known as Coca-Cola Bottlers Philippines, Inc.) has changed ownership several times since the 1990s.

AEV highlighted that Coca-Cola Philippines stands as the top beverage provider in the Philippines, boasting an expansive supply chain of 19 factories and 73 production lines. AEV is in a strong position to support the growth aspirations of Coca-Cola Philippines, leveraging its diverse business interests within the country.

The acquisition will broaden AEV’s portfolio and bolster its diversification strategy by enabling entry into the branded consumer products market.

As part of its long-term growth strategy, CCEP views the acquisition as more of a strategic move. By partnering with Aboitiz, CCEP is able to take advantage of the growth opportunities in the Australia, Pacific, and Indonesia (API) region and establish a foothold in an established and profitable business.

AEV has indicated that the agreement is set to conclude within the first quarter of 2024.

Photo: Coca-Cola FB