Aboitiz Equity Ventures Inc. and Coca-Cola Europacific Partners PLC signed a non-binding letter of intent with The Coca-Cola Company to acquire TCCC’s 100-percent ownership in Coca-Cola Beverages Philippines Inc. for $1.8 billion on a debt-free cash-free basis.
The transaction is consistent with TCCC’s stated intent to divest its bottling operations.
AEV said in a statement it signed a non-binding term sheet and is in advanced discussions with CCEP on the potential joint transaction, which may lead to the acquisition of CCBP from TCCC, based on a 60:40 ownership structure between CCEP and AEV.
“If completed, the proposed acquisition would build on AEV’s portfolio diversification strategy to enter the branded consumer goods space and on CCEP’s successful expansion into the Asia-Pacific region via its acquisition of Coca-Cola Amatil in 2021. AEV would be well positioned to support CCBP’s growth ambition given the synergies that can be generated from AEV’s other businesses,” the group said.
AEV said the proposed acquisition of CCBP, with CCEP, offers a great opportunity to co-acquire an established, well-run business with attractive profitability and growth prospects.
It said the proposed acquisition is subject to a number of conditions, including satisfactory completion of confirmatory due diligence which is well underway, receipt of AEV and CCEP’s board approvals and the parties signing the definitive agreements.
“There is, therefore, no certainty at this stage, that the proposed acquisition of CCBP will be completed, and as such, further updates will be provided in due course,” it said.
AEV said assuming the definitive agreements would be agreed and executed, the potential transaction was expected to close around the end of fiscal year 23, subject to the receipt of certain governmental and regulatory approvals, including clearance from the Philippine Competition Commission.