Coca-Cola Europacific Partners (CCEP) said on Wednesday it intends to jointly acquire Coca-Cola Beverages Philippines with Aboitiz Equity Ventures for $1.8 billion. The deal will make CCEP the world's largest Coca-Cola bottler by revenue and volumes.
CCEP, which bottles and sells Coca-Cola products in Western Europe, Australia and New Zealand, signed a non-binding term sheet with AEV regarding a potential joint acquisition.The deal to buy Coca-Cola's Philippines business will see CCEP and Aboitiz own 60% and 40% respectively.
CCEP and AEV are in advanced discussions on the potential joint transaction, the company said. The acquisition aims to help CCEP expand its footprint in Asia.
However, CCEP's earlier expectation of returning to the top end of its net debt to adjusted core profit range of 2.5-3 times by the end of 2023 is now expected to be achieved in 2024 instead.
In summary, Coca-Cola Europacific Partners plans to jointly acquire Coca-Cola's Philippines business with Aboitiz Equity Ventures for $1.8 billion. The deal aims to make CCEP the world's largest Coca-Cola bottler by revenue and volumes. But CCEP now expects to achieve its debt target in 2024 instead of 2023.
