The story appears on

Page A6

November 19, 2016

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business » Finance

Swire acquires Coca-Cola China assets

HONG Kong conglomerate Swire Pacific Ltd said yesterday that it will acquire Coca-Cola bottling assets in China for 5.87 billion yuan (US$853 million), betting on growing consumption in the mainland of non-alcoholic ready-to-drink beverages.

Swire said it will buy China manufacturing and distribution assets of non-alcoholic ready-to-drink beverages from China Foods Ltd, a subsidiary of state-owned food firm COFCO Corp, for 4.65 billion yuan.

The conglomerate will also buy the 12.5 percent stake it does not own in non-alcoholic ready-to-drink venture Swire Beverages Ltd from Coca-Cola Co for 1.22 billion yuan, it said in a statement.

The companies had already flagged the deal earlier this year, but announced the terms yesterday. The deal is subject to approval by authorities in China.

“The non-alcoholic ready-to-drink beverages market in China’s mainland is sizeable. The company believes that it will continue to present attractive growth opportunities in the long term due to population growth, urbanization and low consumption per capita in China’s mainland compared with developed markets,” Swire said.

Under the realignment, Coca-Cola will cease to be directly involved in bottling operations in China’s mainland, the company added.




 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend