You are using an older browser version. Please use a supported version for the best MSN experience.

Coca-Cola Agrees to Sell Stake in Australian Bottler for $1.6 Billion as Part of Wider Buyout Deal

The Motley Fool logo The Motley Fool 10/27/2020 Eric Volkman
a glass of beer: Coca-Cola Agrees to Sell Stake in Australian Bottler for $1.6 Billion as Part of Wider Buyout Deal © Provided by The Motley Fool Coca-Cola Agrees to Sell Stake in Australian Bottler for $1.6 Billion as Part of Wider Buyout Deal

Coca-Cola (NYSE: KO) has agreed in principle to divest one of its top equity stakes as part of a multibillion-dollar deal between two of its peers. Coca-Cola European Partners (NYSE: CCEP), a bottler based on that continent, has made a non-binding offer to buy out Australian bottler Coca-Cola Amatil in a transaction valued at 9.28 billion Australian dollars ($6.6 billion).

Coca-Cola is a major shareholder in the latter company, holding a nearly 31% stake, and will be a major part of the transaction. For handing over its shares to European Partners, the beverage giant will receive roughly $1.6 billion in cash and stock.

a glass filled with liquid: A glass of cola. © Getty Images A glass of cola.

European Partners was formed in 2016 by three European companies that specialized in the bottling of Coca-Cola Products. In terms of net revenue, it claims it is the largest independent Coca-Cola bottler on the Earth. As with Amatil but to a lesser degree, Coca-Cola has a stake in European Partners (of just over 19%).

In a company presentation on its offer, European Partners said that tying up with Amatil "brings together two of the world's best Coca-Cola bottlers, providing access to complementary, developed markets with attractive long term macro growth fundamentals." In addition to its native Australia, Amatil also serves crucial regional markets such as Indonesia.

Coca-Cola has not yet officially commented on European Partners' offer. 


Video: Jim Cramer: Dunkin' Needs More Space to Expand (TheStreet)

UP NEXT
UP NEXT

On a per-share basis, the American company will be paid less than Amatil, as it is selling only a minority stake. 

The Amatil deal is subject to approval from that company's shareholders, and approval from the relevant regulators.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

SPONSORED:

10 stocks we like better than Coca-Cola

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Coca-Cola wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of October 20, 2020

 
AdChoices
AdChoices
AdChoices

More from The Motley Fool

The Motley Fool
The Motley Fool
image beaconimage beaconimage beacon