Coca-Cola Europacific Partners plc Announces PCC Approval Received to Jointly Acquire CCBPI
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Insights
The acquisition of Coca-Cola Beverages Philippines, Inc. (CCBPI) by Coca-Cola Europacific Partners (CCEP) and Aboitiz Equity Ventures Inc. (AEV) represents a significant consolidation within the beverage industry. This move could potentially strengthen CCEP's market position in Asia, specifically in the Philippines, which is a growing market for consumer goods. The approval from the Philippines Competition Commission (PCC) indicates that the deal has been evaluated for anti-competitive concerns and has been found to comply with regulatory standards.
From a market research perspective, the transaction might lead to operational synergies and economies of scale for CCEP, as they can streamline distribution and marketing efforts in the region. Additionally, the partnership with a local entity like AEV may facilitate smoother integration into the local market, considering AEV's familiarity with the Philippine business landscape. However, it's crucial to monitor how this acquisition affects market competition and consumer choices in the Philippines. Any significant shift in pricing or product availability could impact consumer behavior and, consequently, CCEP's revenue streams in the region.
The regulatory approval of the acquisition is a pivotal step towards the completion of the transaction, with the closure expected by the end of February 2024. Financially, this deal could be accretive to CCEP's earnings, depending on the performance of CCBPI post-acquisition and the cost of integration. Investors should consider the financial health of CCBPI and how its inclusion might affect CCEP's balance sheet, including potential debt incurred to finance the acquisition.
It is also pertinent to assess the transaction's impact on CCEP's stock performance. Typically, market reaction to such acquisitions can be mixed, depending on the perceived benefits and costs. Long-term benefits could include increased market share and revenue growth, while short-term costs might encompass integration expenses and potential cultural or operational misalignments. The involvement of reputable advisers such as Rothschild & Co and BofA Securities may instill confidence in investors regarding the transaction's due diligence and financial soundness.
From a legal standpoint, the transaction's clearance by the PCC is a testament to the rigorous assessment of potential legal and competitive implications. Legal counsel plays a critical role in navigating complex regulatory environments, ensuring compliance with competition laws and structuring the deal to mitigate risks. The involvement of international law firms like Slaughter and May, along with local firms such as Villaraza & Angangco, underscores the importance of addressing both global and local legal frameworks. Stakeholders should be aware that post-acquisition, CCEP and AEV will have to continue adhering to local regulations, which could influence operational strategies and corporate governance practices.
UXBRIDGE, UK / ACCESSWIRE / January 30, 2024 / Coca-Cola Europacific Partners (CCEP) today confirms it has, together with Aboitiz Equity Ventures Inc. (AEV), received regulatory approval from the Philippines Competition Commission (PCC) to jointly acquire Coca-Cola Beverages Philippines, Inc. (CCBPI) from The Coca-Cola Company (KO).
- Further to the announcements on 2 August and 20 November 2023 (see links below), CCEP today announces it has, together with AEV, received regulatory approval from the PCC, to acquire
100% of CCBPI from KO - The transaction is expected to close towards the end of February 2024. Further updates will be provided in due course.
Further information
For more information on the transaction, please see our website www.cocacolaep.com
- https://ir.cocacolaep.com/static-files/0e2aab54-4883-4518-bb2b-c1a5b4d55c2c
(2 August 2023)
- https://ir.cocacolaep.com/news-releases/news-release-details/coca-cola-ep-plc-update-re-acquisition-ccbpi
(20 November 2023)
Advisers
Rothschild & Co is acting as financial adviser to CCEP. BofA Securities[1] is acting as adviser to the Affiliated Transaction Committee (ATC) of the Board of Directors of CCEP. Slaughter and May and Villaraza & Angangco are acting as legal counsel to CCEP.
About CCEP (LEI 549300LTH67W4GWMRF57)
CCEP is one of the leading consumer goods companies in the world. We make, move and sell some of the world's most loved brands - serving 600 million consumers and helping 2 million customers across 30 countries grow their business.
We combine the strength and scale of a large, multi-national business with an expert, local knowledge of the customers we serve and communities we support.
The Company is currently listed on Euronext Amsterdam, NASDAQ (and a constituent of the Nasdaq 100), London Stock Exchange and on the Spanish Stock Exchanges, trading under the symbol CCEP.
For more information about CCEP, please visit www.cocacolaep.com & follow CCEP on Twitter at @CocaColaEP.
About AEV
AEV is one of the leading conglomerates in the Philippines with over 100 years of business history. It has major investments in power, banking and financial services, food, infrastructure, land, and data science and artificial intelligence. AEV is recognized as one of the best-managed companies in the Philippines and the region, consistently cited for its commitment to good corporate governance and sustainability. Currently, the company is on its Great Transformation journey to become the Philippines' first Techglomerate as it continues to drive change for a better world by advancing business and communities.
AEV is a member of the United Nations Global Compact, Global Compact Network Philippines Board of Trustees, the APEC Business Advisory Council and the Council for Inclusive Capitalism, and helps champion sustainability initiatives on a regional level through policies, advocacies, and initiatives that contribute to the United Nations Sustainable Development Goals (UN SDGs). With a clear focus on ESG, the company is implementing its #OneAboitizSustainability Synergy model which transforms its life-essential businesses to improve sustainable practices and continue to create a positive impact on society and the environment.
Link to AEV's website and release: https://aboitiz.com/investor-relations/disclosure/
Enquiries
General Counsel and Company Secretary: Clare Wardle; secretariat@ccep.com
Investor Relations: Sarah Willett; sarah.willett@ccep.com
Media: ccep@portland-communications.com
Forward-Looking Statements
This document contains statements, estimates or projections that constitute "forward-looking statements", including concerning the proposed joint venture with Aboitiz Equity Ventures Inc. (AEV) and acquisition of Coca-Cola Beverages Philippines, Inc. (CCBPI). Generally, the words "ambition", "target", "aim", "believe", "expect", "intend", "estimate", "anticipate", "project", "plan", "seek", "may", "could", "would", "should", "might", "will", "forecast", "outlook", "guidance", "possible", "potential", "predict", "objective" and similar expressions identify forward-looking statements, which generally are not historical in nature.
Forward-looking statements are subject to certain risks that could cause actual results to differ materially from CCEP's historical experience and present expectations or projections. As a result, undue reliance should not be placed on forward-looking statements, which speak only as of the date on which they are made. These risks include but are not limited to:
1. those set forth in the "Risk Factors" section of CCEP's 2022 Annual Report on Form 20-F filed with the SEC on 17 March 2023 and as updated and supplemented with the additional information set forth in the "Principal Risks and Risk Factors" section of the H1 2023 Half-year Report filed with the SEC on 2 August 2023;
2. risks and uncertainties relating to the global supply chain and distribution, including impact from war in Ukraine and increasing geopolitical tensions and conflicts including in the Middle East and Asia Pacific region, such as the risk that the business will not be able to guarantee sufficient supply of raw materials, supplies, finished goods, natural gas and oil and increased state-sponsored cyber risks;
3. risks and uncertainties relating to the global economy and/or a potential recession in one or more countries, including risks from elevated inflation, price increases, price elasticity, disposable income of consumers and employees, pressure on and from suppliers, increased fraud, and the perception or manifestation of a global economic downturn;
4. risks and uncertainties relating to potential global energy crisis, with potential interruptions and shortages in the global energy supply, specifically the natural gas supply in our territories. Energy shortages at our sites, our suppliers and customers could cause interruptions to our supply chain and capability to meet our production and distribution targets;
5. risks and uncertainties relating to potential water use reductions due to regulations by national and regional authorities leading to a potential temporary decrease in production volume; and
6. risks and uncertainties relating to the proposed joint venture with AEV and acquisition of CCBPI, including the risk that the proposed transactions may not be consummated on the currently contemplated terms or at all, or that our integration of CCBPI's business and operations may not be successful or may be more difficult, time consuming or costly than expected.
Due to these risks, CCEP's actual future financial condition, results of operations, and business activities, including the agreements relating to and results of the proposed joint venture with AEV and acquisition of CCBPI, and ability to remain in compliance with existing and future regulatory compliance, may differ materially from the plans, goals, expectations and guidance set out in forward-looking statements. These risks may also adversely affect CCEP's share price. Additional risks that may impact CCEP's future financial condition and performance are identified in filings with the SEC which are available on the SEC's website at www.sec.gov. CCEP does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required under applicable rules, laws and regulations. Any or all of the forward-looking statements contained in this filing and in any other of CCEP's public statements may prove to be incorrect.
End
[1] Merrill Lynch International ("BofA Securities"), a subsidiary of Bank of America Corporation, is acting exclusively for CCEP in connection with the transaction that is the subject of this announcement and for no one else and will not be responsible to anyone other than CCEP for providing the protections afforded to its clients or for providing advice in relation to such transaction.
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SOURCE: Coca-Cola Europacific Partners plc
View the original press release on accesswire.com
FAQ
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