Aboitiz Equity Ventures Inc. (AEV), the investment arm of the Aboitiz Group, has expressed its intention to acquire a minority stake in Coca-Cola Beverages Philippines (CCBP) through a $1.8 billion cash joint venture deal with Coca-Cola Europacific Partners (CCEP). According to a report from the Philippine Stock Exchange, AEV and CCEP have signed a non-binding Term Sheet with The Coca-Cola Company, which is currently divesting its CCBP interests.
The parties involved are currently engaged in advanced discussions regarding the potential joint transaction, in which CCEP would hold a majority ownership with a 60 percent stake. AEV, on the other hand, would acquire the remaining 40 percent non-controlling interest. However, it is important to note that the transaction is still subject to a number of conditions and there is no guarantee that it will proceed until closing.
These conditions include the satisfactory completion of confirmatory due diligence, which is currently underway, as well as the receipt of approvals from the boards of AEV and CCEP, and the signing of definitive agreements by all parties involved. If the plan does proceed, AEV anticipates that the deal could be finalized by the end of the year, pending approval from the Philippine Competition Commission.
CCEP is a globally recognized consumer goods company that serves 600 million consumers and supports 1.75 million customers across 29 countries in growing their businesses. On the other hand, AEV, part of the Aboitiz family, has significant investments in various sectors including power, banking and financial services, food, infrastructure, land, and data science and artificial intelligence.
By pursuing this joint venture, AEV aims to strengthen its presence in the beverage industry and leverage the vast experience and global reach of CCEP. This strategic move aligns with AEV’s commitment to pursuing opportunities that contribute to sustainable growth and value creation.
It remains essential to consider that this news is subject to various perspectives and opinions, and the final outcome will depend on multiple factors, including regulatory approvals. Both AEV and CCEP are confident in the potential of this collaboration and are working diligently to meet the necessary requirements.
