Coca-Cola Co said on Monday it had dropped plans to refranchise its Africa bottling business, Coca-Cola Beverages Africa (CCBA), and would instead keep its majority stake in the unit for the time being.
The U.S. beverage giant had wanted to refranchise the unit as part of its global plan to divest its manufacturing and distribution assets to focus on main beverage business and boost margins.
“While we remain committed to the refranchising process, we believe it’s in the best interests of all involved for Coca-Cola to continue to hold and operate CCBA,” Coca-Cola said in a statement.
The company said it has had discussions with a number of potential partners. Coca-Cola HBC and rival Coca-Cola European Partners were seen as potential buyers for the unit.
Shares of Coca-Cola HBC were down 7.4%.
Coke in 2016 bought a majority stake in CCBA, the continent’s largest soft drink bottler, with operations in a dozen markets including South Africa, Kenya, Uganda and Tanzania, from Anheuser-Busch InBev SA.
The company said it would reclassify its financial statements from second quarter in 2019 to include CCBA as part of its continuing operations
Have your say
More Business Headlines
- GES-SIC Life launch insurance policy for teachers
- Western North: Cocoa farmers, landowners meet over controversial lease pact
- Police pick up GUTA executives over trade fracas with foreigners
- US billionaires' group calls for wealth tax
- Vodafone’s unveils new offer that allows you to share data in the family
- Zimbabwe ends decade of dollarisation in new currency reform
- China: Africa projects should be sustainable, denounces criticism
- Foreign MoMo operators must have 30% local participation to secure license – BoG
- Special Prosecutor, CHRAJ to assist PIAC to fight misuse of petroleum funds
- KPMG appoints new Senior Partner
- Gov’t gives boost to livestock industry with 'Rearing for Food and Jobs' programme
- Standard Chartered, GCX sign MoU to support farmers
- Premier picks Health Insurance Brand of the Year 2018
- DVLA, Guinness Ghana roll out new drink-drive module
- Access Bank unveils new logo; targets unbanked population through financial technology