This follows CCEP’s announcement on October 25, where it stated it was looking at acquiring the company.
CCEP – which is the largest Coca-Cola bottler by revenue with markets centred in Western Europe – says the proposed acquisition would create a broader and more balanced footprint for the company while almost doubling its consumer reach.
While Australia and New Zealand are Amatil's biggest markets by far - and are similar in many ways to CCEP's European markets - it also eyes up the opportunity to take on what is set to be one of the world’s most populous markets, Indonesia.
It will also give the European bottler an edge in expanding into alcohol and broadening its reach in coffee. CCEP is launching Topo Chico in Europe next month - as well as expanding further into coffee with Costa - and says that it can learn from Amatil’s substantial alcohol and coffee division.
The proposed AUD $9.28bn ($6.6bn) acquisition would grow CCEP’s revenues by 25% from €12bn ($14.2bn) to more than €15bn ($17.7bn).
CCEP has made an offer to acquire 69.2% of the existing share capital of Coca-Cola Amatil held by independent shareholders; while setting out a proposal with The Coca-Cola Company to acquire TCCC’s 30.8% interest in Amatil (19.5% of CCEP is owned by TCCC).
Coca-Cola Amatil’s Board of Directors (excluding nominee directors from The Coca-Cola Company) has stated that it intends to unanimously recommend the scheme to the independent shareholders.
The deal will be subject to customary conditions, including Coca-Cola Amatil shareholder approval, Australian Foreign Investment Review Board approval and New Zealand Overseas Investment Office approval.
Damian Gammell, Chief Executive Officer of CCEP, said: “This is a fantastic opportunity to bring together two of the world’s best bottlers to drive faster and more sustainable growth. Since the creation of CCEP four years ago, we have proven our ability to create value through expansion and integration. Now is the right time to move forward by taking on these great franchises and markets.
“The strategic rationale behind this transaction is compelling, solidifying our position as the largest Coca-Cola bottler by revenue. I am eager to apply our proven formula in Western Europe to Coca-Cola Amatil’s markets, including leadership in areas such as revenue growth management, in-market execution, digital and sustainability. However, I am equally excited and genuinely convinced that there will be many more opportunities as we move forward together with speed, scale, excellent people and a richer, more diverse culture."
