Coca Cola Shares: Jubilant Beverages Hindustan to buy 40% stake in Coca-Cola Holdings; CCI approval

New Delhi| The Competition Commission of India (CCI) has approved the share acquisition between Jubilant Beverages Limited (JBL) and Hindustan Coca-Cola Holdings Private Limited (HCCH). Jubilant Hindustan to buy 40% share in Coca-Cola Holdings.

News of payment of around Rs 10,000 crore, will get 40 percent stake
The company has not disclosed the financial details of the deal. However, some media reports call for a payment of around Rs 10,000 crore for a 40 per cent stake in Hindustan Coca-Cola Holdings.

Coca-Cola Company selling its stake in bottling operations
The deal is part of the Coca-Cola Company’s policy to sell its stake in bottling operations globally as per its strategy. HCCBL operates 13 factories. This company also manufactures and sells various beverages/products.

Bottling plant acquisition for Rs 2,000 crore
Earlier last week, the competition regulator-CCI approved a proposal to acquire Coca-Cola’s bottling plant, the beverage major of Kandhari Global Beverages, for Rs 2,000 crore. In December last year, Coca-Cola announced the sale of a 40 per cent stake in its Indian bottling business – Hindustan Coca-Cola Beverages Pvt Ltd (HCCBL) to Jubilant Indian Group.

Know about the companies involved in the deal
Hindustan Coca-Cola Holdings (HCCH) is a holding company. It has no independent representative in India. Attached to the Coca-Cola Company Group of Atlanta, the company is a subsidiary of Hindustan Coca-Cola Beverages (HCCB). Jubilant Beverages and Jubilant Bevco (BevCo) are new entities. Both belong to the Jubilant Bharatia group (Jubilant Hartia Group).