26 Oct 2025 Coca-Cola bottler gears up for R44.5bn JSE debut in 2026
A Coca-Cola listing on the Johannesburg Stock Exchange is planned following the R59-billion bottling deal – veteran stockbroker David Shapiro weighs in….
There was a major development in the world of Coca-Cola on Tuesday 21 October 2025 – the Coca-Cola Company and SA-based Gutsche Family Investments announced that they’ve agreed to sell a 75% controlling interest in Coca-Cola Beverages Africa (CCBA) to Coca-Cola HBC AG.
CCBA is the largest bottler for Coca-Cola in Africa, accounting for about 40% of all Coca-Cola product volume sold across the continent.
And Coca-Cola HBC is one of the largest bottlers in the world, with operations in 29 countries across Europe and Africa, including Nigeria and Egypt.
Breaking down the numbers
Coca-Cola will sell 41.52% out of its 66.52% stake in CCBA to Coca-Cola HBC, and Coca-Cola HBC is acquiring 33.48% of CCBA that is held by GFI.
After the sale, the Gutsche family will continue its involvement in both the Coca-Cola system and Africa through its ownership stake in Coca-Cola HBC.
In total, the transaction values 100% of CCBA at an equity value of US$3.4 billion. The transactions are targeted to close by the end of 2026.
Coca-Cola and Coca-Cola HBC have also agreed to a separate option agreement for Coca-Cola HBC to acquire the remaining 25% of CCBA still owned by Coca-Cola within a six-year period from closing.
As part of the acquisition, Coca-Cola HBC will pursue a secondary listing on the Johannesburg Stock Exchange (JSE), which it says underpins its ‘commitment to South Africa and the African continent’.
Veteran stockbroker David Shapiro sees this as a positive development.
While this will be a secondary listing, it is important because it will allow South African participants – or anybody around the world, to buy these shares, notes the chief global equity strategist at Sasfin Securities.
“I think the reason they’re doing this is because of the extent of the operations in Africa… because of the extent they want to spread ownership and give Africans the chance.”
Click the graphic below to hear the interview with Stephen Grootes…
Strategic rationale for the acquisition – from The Coca-Cola Co
- Materially expands Coca-Cola HBC’s existing African presence, bringing together two leading bottlers in the continent. CCBA will add 14 African markets in addition to Coca-Cola HBC’s business in Nigeria since 1951 and Egypt since 2022.
Following Completion, Coca-Cola HBC will represent two-thirds of Africa’s total Coca-Cola system volume and cover over 50%2 of the continent’s population, solidifying Coca-Cola HBC’s long-term commitment to Africa – a key driver of future growth. The Acquisition would result in pro forma 2024 volumes for the combined group of 4.0 billion unit cases, revenues of €14.1-billion and EBIT of €1.4-billion. - Drives further diversification of Coca-Cola HBC’s geographic footprint, with increased exposure to high growth markets. CCBA’s markets have compelling demographics and macroeconomic prospects, including growing populations and economies. With over 60% of the population in CCBA’s markets aged under 30, these markets offer significant potential for consumer recruitment and growth in per capita consumption.
- Consistent with the pillars of Coca-Cola HBC’s growth strategy and vision of being the leading 24/7 beverage partner. CCBA is a leading player in the non-alcoholic ready-to-drink (NARTD) category across its key markets, with a winning portfolio of over 40 global and local brands. CCBA has a strong track record of performance, and has deep commitment to investing in talent, sustainability and the communities in which it operates.
- Clear opportunity to leverage Coca-Cola HBC’s expertise in emerging markets, to unlock further growth. Coca-Cola HBC hasa proven track record of operating in Africa, with a long-term presence in Nigeria and the successful integration of Egypt, which adds to CCBA’s significant experience in the continent. The Acquisition creates a platform for Coca-Cola HBC to share best practices, roll-out its leading bespoke capabilities and invest further in CCBA, to drive growth.
- Further strengthens Coca-Cola HBC’s long-term strategic partnership with The Coca-Cola Company. TCCC and Coca-Cola HBC have been longstanding partners, and the Acquisition reflects a joint vision to continue to create value for all stakeholders for the long-term.
The Coca-Cola Company: Read more here
Comment from the Financial Mail
EDITORIAL: Emerging market fizz
Coca-Cola HBC’s proposed $2.6bn (R45bn) acquisition of Coca-Cola Beverages Africa (CCBA) once again shows the great store major international consumer brands set by the longer-term prospects of sprawling African markets.
Coca-Cola HBC’s move follows similar deals in recent years, including US snack conglomerate PepsiCo’s takeover of Pioneer Foods and beer giant Heineken acquiring control of Distell and Namibian Breweries. Snacks giant Mondelez also had a peek at AVI’s Snackworks division about four years ago, but opted to step away before negotiations reached an advanced stage.
The move on CCBA could well make investors reflect on which other local brand powerhouses might be in the sights of global consumer conglomerates. Certainly counters such as Tiger Brands and AVI have best-selling brand ranges with market-leading positions, as well as defendable (and dependable) margins.
This week the food brands sector saw its own local shakeup when Premier, with its leading position in the bread market, advanced on smaller food brands group RFG Holdings, which competes across canned foods, juices, pies and spices.
The enlarged Coca-Cola conglomeration, which has pencilled in a secondary listing on the JSE, will be compelling in scale, with strong market positions across Central and Eastern Europe as well as a slew of African markets. The deal is expected to provide low single-digit earnings accretion from the first full year after its completion.
Recently formed Heineken Beverages showed that integrated operations often experience unexpected snags and expose strategic vulnerabilities. The new Coca-Cola entity, however, is the big dog in the market share fight; it is unlikely to face the same type of competitive pressures Heineken did in its African business bulk-up.