SABMiller: Coca-Cola Beverages Africa Merger Parties, Government Reach Deal

(RTTNews) - SABMiller Plc. (SBMRY.PK, SAB.L) Wednesday announced that Coca-Cola Beverages Africa merger parties and the South African Government reached agreement on public interest conditions for merger.

The comprehensive set of commitments between SABMiller plc, The Coca-Cola Co. (KO) and Gutsche Family Investments with the South African Government will be recommended to the Competition Tribunal in connection with the proposed creation of Africa's largest soft-drink beverage bottling operation.

The company said the parties agreed on concerns regarding employment, access to retail cooler space for smaller competitors, localisation of production and inputs used in the production of Coca-Cola products and Appletiser brands, economic empowerment and the location of the headquarters.

SABMiller agreed to invest R800 million to support enterprise development for two groups of entrepreneurs.

These commitments will ensure that CCBA, which will be headquartered in South Africa, will support economic and social development in the country in a number of significant ways.

Headquartering CCBA in South Africa will result in additional revenue for local and national governments.

Welcoming the agreement and the CCBA commitments, Ebrahim Patel, Minister of Economic Development noted that the agreement laid the basis for deeper industrialisation in the South African economy.

A Competition Tribunal hearing on the proposed formation of Coca-Cola Beverages Africa as part of the regulatory approval process with the South African Competition Authorities is due to commence on May 9.

The agreement between the merger parties and the South African government is expected to expedite the approval process.