Swire Pacific acquires Coca-Cola bottling business in Vietnam, Cambodia
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Hong Kong-based conglomerate Swire Pacific is offering $1 billion for Coca-Cola’s bottling operations in Vietnam and Cambodia, a move to expand its presence in the Southeast Asian market.
Swire Pacific will pay Coca-Cola Indochina, which produces and sells Coca-Cola products in both countries, $1.015 billion in cash, South China Morning Post cited its filing to the Hong Kong stock exchange Monday.
The transactions “will expand the group’s beverages business into one of the most rapidly growing beverages markets,” the company said.
It is expected to be completed within the next six months, subject to antitrust approval, Bloomberg cited the filing.
Swire, a Hong Kong- and London-based British conglomerate, was founded over 200 years ago in 1816. It has been redirecting investment into key operations of beverages and property, as well as emerging sectors like healthcare.
It is also the principal shareholder at Hong Kong flag carrier Cathay Pacific Airways, one of Asia’s best-known airlines.
Back in 2016, the group bought a Coca-Cola’s bottling facility in southern China. Its beverage arm operates one of the largest Coca-Cola plants in the world.
In Vietnam, Coca-Cola has three factories, currently under the control of Coke’s Bottling Investment Group.
Questions & Answers
Q.What is the total cost of Swire Pacific's acquisition of the Coca-Cola bottling operations in Vietnam and Cambodia?
What is the total cost of Swire Pacific's acquisition of the Coca-Cola bottling operations in Vietnam and Cambodia?
Swire Pacific is paying $1.015 billion in cash for the Coca-Cola bottling operations in Vietnam and Cambodia. This figure was cited by the South China Morning Post from Swire Pacific's filing to the Hong Kong stock exchange.
Q.What is the primary motivation for Swire Pacific making this acquisition?
What is the primary motivation for Swire Pacific making this acquisition?
The acquisition is intended to expand Swire Pacific's presence in the Southeast Asian market. The company stated that these transactions will grow its beverages business in one of the most rapidly expanding beverages markets globally.
Q.What conditions must be met before this acquisition is finalised?
What conditions must be met before this acquisition is finalised?
The acquisition is subject to antitrust approval before it can be completed. Bloomberg cited the filing, which also indicated that the transaction is expected to conclude within the next six months.
Q.Does Swire Pacific have previous experience with Coca-Cola bottling operations?
Does Swire Pacific have previous experience with Coca-Cola bottling operations?
Yes, Swire Pacific has prior experience in this sector. The group acquired a Coca-Cola bottling facility in southern China in 2016. Its beverage arm currently operates one of the largest Coca-Cola plants globally.
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