ISLAMABAD: The Competition Commission of Pakistan (CCP) has given the green light to Coca-Cola İçecek (Turkey) for the acquisition of 49.67 % shareholding of Coca Cola (Pakistan) in a transaction valued at $300 million.
As per details shared by CCP, under the phase-1 review of the Competition Act, 2010, and the Competition (Merger Control) Regulations, 2016, Coca-Cola İçecek (Turkey) successfully acquired the majority shares through its subsidiary, CCI International Holland, from the previous owner Atlantic Industries, which in turn is a subsidiary of the original “The Coca Cola Company” (TCCC).
The Share Purchase Agreement (SPA) was signed in December 2022 and has only just been approved by the CCP. The purchase price in this case was determined through bilateral negotiations with TCCC in reference to an independent valuation report. CCBPL’s valuation indicates an Enterprise Value (“EV”) of USD 635 million.
Following the share transfer, CCI (Turkey) will, directly and indirectly, own a 99.34% stake in CCBPL. This strategic acquisition firmly places Coca-Cola Turkey in the driver’s seat, making it the majority and largest shareholder in Coca Cola (Pakistan), granting them the managerial reins.
“This development signifies a significant vote of confidence in Pakistan’s economic capabilities and growth prospects” stated CCP chairman, Dr Kabir Sidhu. “Our streamlined merger systems and processes have facilitated this transaction, emphasizing our commitment to fostering international investments in Pakistan, ” he added.
According to CCP this strategic maneuver reflects the ongoing efforts of the Pakistani government and regulatory bodies to attract foreign investments.
