Coca-Cola to swallow ABInBev share in African subsidiary

Brussels (AFP) - Coca-Cola intends to buy the stake global beer giant Anheuser-Busch InBev holds in Coca-Cola Beverages Africa, the two companies announced Tuesday.

The proposed deal follows ABI's mega-takeover of SABMiller to create the world's biggest beer company.

That buyout allowed the the Belgian-Brazilian maker of Budweiser and Stella Artois to recover the stake its British-South African rival held in Coca-Cola's African subsidiary.

SAB Miller, which did much of the US beverage giant's bottling worldwide, held a majority share in it.

"The company has chosen to exercise its right to acquire ABI's stake in CCBA because it intends to implement its long-term strategic plan in these markets with other partners," Coca-Cola said in a statement.

The company added: "It has a number of existing partners who are highly qualified and interested in these bottling territories."

ABInBev issued a statement meanwhile saying that Coca-Cola had notified it "of its intention to acquire AB InBev's stake in Coca-Cola Beverages Africa," adding it did not expect the deal to have a financial impact.

Like ABInBev, Coca-Cola said that over the next few months it will "negotiate the terms of the transaction with ABI according to the contractual parameters."

It said the deal will then face the regulatory approval process.

ABInBev's merger with SABMiller was finalised late Monday and the ordinary shares of the new group are listed from Tuesday.

ABInBev groups brands like Corona, Stella Artois, Leffe while SABMiller has Foster's and Coors.