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Stock Commentary

Aboitiz Equity Ventures closed transaction to acquire 40% interest in Coca-Cola PH

Merkado Barkada
Aboitiz Equity Ventures closed transaction to acquire 40% interest in Coca-Cola PH

The takeover of Coca-Cola Beverages Philippines Inc. (CCBPI) by Aboitiz Equity Ventures [AEV 48.20 +1.8%] [link] and Coca-Cola Europacific Partners (CCEP) has closed upon completion of “all conditions precedent” to the transaction. AEV and CCEP acquired 100% of CCBPI for $1.8 billion (~P100 billion), with AEV coming out of the transaction with 40% beneficial ownership of the “leading beverage supplier in the Philippines”. According to AEV, CCBPI has a “wide supply chain footprint” with “73 production lines and 19 plants”.


MB bottom-line: There was nothing contentious here, just noting the completion of a deal that we first talked about back in August. This is part of AEV’s push into the “branded consumer goods space.” As a non-Pepsi guy, I see the value in Coke products here. I just don’t love this move for a company with the political and economic capital that AEV has at its disposal. This tailwind won’t last forever, and it feels to me like the opportunity cost of this deal is considerable.

 

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Merkado Barkada is a free daily newsletter on the PSE, investing and business in the Philippines. You can subscribe to the newsletter or follow on Twitter to receive the full daily updates.

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