UK: Coca-Cola merges European bottling firms
Three European bottlers of Coca Cola have agreed to merge to create Coca Cola European Partners (CCEP), a new entity which will generate over $12 billion per year across 13 European countries.
The new bottling company, which will be based in London, combines Coca Cola Iberian Partners (CCIP), Coca Cola Enterprises and Coca Cola Erfischungsgetranke AG, making the world’s largest bottler of Coca Cola products, serving more than 300 million consumers in Western Europe and giving the company a value of $31 billion.
"It's a major milestone and major transaction that will benefit all parties involved," said Muhtar Kent, chairman and chief Executive of Coca-Cola. “With the strong leadership that will be assembled from across the three organizations, Coca-Cola European Partners will be well positioned to deliver better and more effective service to customers throughout Western Europe and drive profitable growth across multiple beverage categories”.
The deal is subject to approval from regulators and shareholders of Coca Cola Enterprises and, according to sources, is expected to be closed in the second quarter of 2016.
Source: Reuters / New York Times