Some housekeeping news from Coca-Cola Beverages Africa (CCBA), which has obtained regulatory approval for the acquisition of 60% of the soft drinks business of Eswatini Beverages; ownership of the other 40% will be retained by Tibiyo Taka Ngwane. The new entity will trade as Eswatini Coca-Cola Beverages (ECCB), which will function as a subsidiary of the South African business. What’s the thinking? Over to you, ECCB country manager Sanele Khumalo: “Access to shared best practices will enhance efficiencies and a better distribution capability will provide pervasive availability of cold beverages to end-customers. We will also be able to respond to consumer demand more quickly.” CCBA produces 40% of all Coca-Cola products sold in Africa by volume, and trades in South Africa, Ghana, Ethiopia, Uganda, Kenya, Tanzania, Namibia, Mozambique, Comoros, Mayotte, Zambia, Botswana, and now Eswatini. The thinking behind this sort of footprint is to leverage scale to the benefit of punters, they say, and to drive their sustainability agenda.
Comment: Solid bit of M&A there, big feller. Keep it up.