Upon completion of the transaction, Swire Coca-Cola will own and manage Cambodia Beverage Company, which has one bottling plant in Cambodia, as well as Coca-Cola Beverages Vietnam, which has three bottling facilities in Vietnam
Swire Coca-Cola has entered into an agreement to buy Coca-Cola bottling operations in Vietnam and Cambodia. (Credit: Swire Pacific Limited)
Swire Coca-Cola, a subsidiary of Swire Pacific, has agreed to buy Coca-Cola bottling operations in Vietnam and Cambodia for $1.02bn.
The transaction represents Swire Coca-Cola’s first investment in South East Asia.
Upon completion of the transaction, Swire Coca-Cola will own and manage Cambodia Beverage Company, which has one bottling plant in Cambodia, as well as Coca-Cola Beverages Vietnam, which has three bottling facilities in Vietnam.
Also, the deal will increase the Swire Coca-franchise population by 15% to 876 million people.
The transaction deal is scheduled to be completed within six months, subject to anti-trust approval. It will be funded via Swire Pacific’s internal resources and existing banking facilities.
Swire Coca-Cola managing director Karen So said: “As a long-term strategic partner with Coca-Cola, we are delighted to be expanding our relationship through this acquisition and excited by the enormous growth potential of the non-alcoholic beverage markets in Vietnam and Cambodia, which are valued at over US$6 billion and forecast to grow at over 6% CAGR until 2036.
“With our successful refranchising experience in the USA and Chinese Mainland between 2014 and 2017, I am confident that our continuous commitment to excellence will help capture the opportunities that these dynamic markets will bring.
“We look forward to the next exciting chapter in our history as we make our first foray into South East Asia.”
Swire Coca-Cola has the license to manufacture, market and distribute products of The Coca-Cola Company in the Chinese Mainland, Hong Kong SAR, Taiwan Region and 13 states of the US.