Coca-Cola will pay $1 billion for the sale of its African bottling interest
Coca-Cola (KO.N), opens in a new tab, said in a regulatory report on Thursday that it plans to take an impairment charge of about $1 billion in the fourth quarter of 2025 because it sold a part of its interest in bottling operations in Africa.
In the late afternoon, Coca-Cola stock fell about 1%.
Coco-Cola HBC, a company based in Switzerland, said on Tuesday that it had agreed to pay $2.6 billion for a 75% share in an African company.
Company statements say that Coca-Cola HBC will buy U.S.-based Coca-Cola’s nearly 42% stake in Coca-Cola Beverages Africa (CCBA) along with the Gutsche Family Investments’ full stake. This will value the African bottler at $3.4 billion.
The deal is likely to go through by the end of 2026. If it does, Coca-Cola HBC will be the second-largest Coca-Cola bottler in the world by volume, after Coca-Cola FEMSA (KOFUBL.MX). It will also have a much bigger presence in Africa.
The deal helps Coca-Cola HBC meet the needs of younger consumers in 14 African areas where demand is growing. It also helps the company deal with rising costs, such as those caused by worries about U.S. tariffs.
Coca-Cola HBC wants to get a secondary listing on the Johannesburg Stock Exchange. They also have the opportunity to buy Coca-Cola’s last 25% stake in CCBA within six years of the deal closing.
Coca-Cola, which is based in Georgia, had a good third quarter on Tuesday thanks to strong demand for its sugar-free drinks and Fairlife in the U.S. and sodas in some other countries.
