Coca-Cola HBC to purchase a 75% stake in Coca-Cola Beverages Africa for $2.6bn, creating the world’s second-largest Coke bottler. The deal will expand Coca-Cola HBC’s presence in Africa, entering 14 new markets. Plans for a secondary listing on the Johannesburg Stock Exchange are in place.

The combined companies would generate pro-forma revenues of €14.1bn and EBIT of €1.4bn in 2024. The deal aims to be finalized by the end of 2026, with the remaining 25% of CCBA subject to an option agreement. Coca-Cola HBC issued a trading update, showing 5% revenue growth in Q3.

The transaction is expected to be low-single digit EPS accretive post-completion. Coca-Cola HBC can purchase the remaining 25% of CCBA within six years. Analysts see growth potential in Africa, with 493 million people in CCBA markets. Coca-Cola HBC shares were down 0.68% at 3,514p.

Read more at Yahoo Finance: Coca-Cola HBC expands in Africa with bottling M&A