FILE PHOTO: Traffic passes a Coca-Cola digital billboard in the Times Square area of Manhattan in New York City, U.S. March 2, 2023. REUTERS/Chris Helgren/File Photo
MANILA, Philippines —The Aboitiz Group and its European partner completed on Friday their P100-billion buyout of Coca-Cola’s Philippine unit, adding the popular brand to their investment portfolio.
Aboitiz Equity Ventures Inc. (AEV) bought 40 percent of Coca-Cola Beverages Philippines Inc., and Coca-Cola Europacific Partners Plc. (CCEP) purchased 60 percent.
“AEV and CCEP completed the transaction following the completion of all the conditions precedent,” Aboitiz said in a stock exchange filing.
Coca-Cola has been available in the country since the early 20th century and began local production in 1927. Its portfolio includes popular carbonated beverage brands like Coca-Cola, Royal, and Sprite.
READ MORE: Aboitiz buys 40% of Coca-Cola PH
Coca Cola Philippines, which has a long history of changing ownership, was last controlled by US-based The Coca-Cola Co. It has a wide supply chain footprint consisting of 73 production lines and 19 plants.
Profitability, growth prospects
In its disclosure on Friday, Aboitiz Equity said the deal will allow them to benefit from “attractive profitability and growth prospects”.
Coca Cola Philippines’ latest financial statements showed revenue of almost P95 billion and a net income of P2.2 billion in 2022.
The deal was completed after the buyers secured various approvals, including the go-signal from the Philippine Competition Commission. The last requirement called for the creation of CCEP Aboitiz Beverages Philippines Inc., the venture that acquired 100 percent of Coca Cola Philippines from The Coca Cola Co.
READ MORE: Aboitiz gets PCC nod for P40-B Coke Philippines investment
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The Aboitiz Group -which owns Aboitiz Power, Union Bank of the Philippines, and Pilmico Foods- has been diversifying deeper into infrastructure and consumer segments.
Net income during the first nine months of 2023 suffered a nearly 16-percent drop mainly due to the absence of substantial non-recurring gains. Aboitiz Equity reported a net income of P18 billion, down from P21.4 billion in the same period in 2022.