One of the largest beverages giants, Coca Cola recently announced a merger which for the first time, will be a merger involving three parties. Coca Cola will be entering into a business venture with its two major counterparts in by far the biggest and best European consumer agreement of this century. The company also declared that it will be combing its business activities with the Iberian Partners of Coca Cola and also with the Coco Cola Company’s bottling business unit.
The new merger will called Coca Cola European Partners which is anticipated to have a market value of 28 billion euros. It is also expected that after 3 years of completion of business this agreement will be able to attain synergies ranging between US$350 million and US$375 million. This business venture that would be serving around 300 million consumers in thirteen territories all across Western part of Europe, is projected to have yearly sales worth US$12.6 million with earnings of almost US$2.1 billion.
Since this merger has been designed to be a deal of inversion, the Coca Cola European Partners will be situated in United Kingdom. The inversion deal was one that was forced to be the point of focus when Pfizer was pursuing AstraZeneca. This will be by far the biggest inversion deal that would be involving a consumer firm going beyond Burger King’s takeover worth US$11.4 billion, of Tim Hortons, a doughnut chain, in the year earlier. The CCEP will soon get listed in the Madrid Stock Exchange, New York Stock Exchange, and also the Amsterdam Euronext.
After the conglomerate of Heineken and Unilever, this business venture is expected to be third biggest consumer company to be listed in the Amsterdam Stock Exchange. SABMiller, the brewing giant entered an agreement with Coca Cola sabco, which is a bottling firm in order to create a new company for covering 40 pc of the carbonated beverage that is retailed in Africa.