Coca-Cola Europacific Eyes Takeover of Coca-Cola's $1.8 Billion Philippines Bottling Business
By Joe Hoppe
Coca-Cola Europacific Partners said Wednesday that it is considering together with Aboitiz Equity Ventures to buy Coca-Cola Beverages Philippines from The Coca-Cola Company, valuing it at around $1.8 billion.
The London-listed bottling company said the Philippines bottling business shows attractive profitability and growth prospects, and would build upon its own expansion into the Australia, Pacific and Indonesia market that started 2021.
A takeover would be expected to close around the end of 2023. It is still subject to a number of conditions, including due diligence and regulatory approval, and there can be no certainty it will be entered into nor completed, it said.
The European bottler said it has entered a letter of intent and signed a nonbinding term sheet with AEV on the potential joint transaction, based on a 60:40 ownership structure for Coca-Cola Europacific and AEV, respectively.
The agreement implies an enterprise value of $1.8 billion on a debt-free, cash-free basis for the Philippines business. The consideration would be paid in cash.
The proposed acquisition would position Coca-Cola Europacific as the world's largest Coca-Cola bottler by both revenue and volume.
Write to Joe Hoppe at joseph.hoppe@wsj.com
(END) Dow Jones Newswires
August 02, 2023 03:32 ET (07:32 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
These Stocks Are (Still) Powering the Bull Market
-
5 Undervalued Energy Stocks to Play the AI Data Center Demand Boom
-
After Earnings, Is Lowe’s Stock a Buy, Sell, or Fairly Valued?
-
5 Stocks With the Largest Fair Value Estimate Cuts After Q1 Earnings
-
10 Stocks With the Largest Fair Value Estimate Increases After Q1 Earnings
-
Markets Brief: Inflation Back in the Spotlight
-
AI Is Booming, but Consumer Spending Is Slowing. Which Will Prevail in the Stock Market?
-
What’s Happening In the Markets This Week
-
3 Dividend Stocks for June 2024
-
After Earnings, Is Alibaba Stock a Buy, Sell, or Fairly Valued?
-
MongoDB Earnings: Slashing Valuation as Execution and Macro to Blame for Lower Guidance
-
Marvell Earnings: We Raise Our Medium-Term AI Forecast and Bring Our Valuation Up to $75
-
Zscaler Earnings: Impressive Traction in Emerging Products Drives Sales Growth for the Quarter
-
Dell Earnings: Raising Valuation on Strong AI, but the Stock Remains Severely Overvalued
-
After Earnings, Is Nvidia Stock a Buy, Sell, or Fairly Valued?
-
The 10 Best Companies to Invest in Now