South Africa Approves SABMiller, Coca-Cola Bottling Deal

By Olga Cotaga

LONDON--SABMiller PLC (SAB.LN) Tuesday said the South African Competition Tribunal has approved a deal to combine the African soft drink operations of SABMiller, the Coca-Cola Company (KO) and Gutsche Family Investments, the South African owners of local bottler Coca-Cola Sabco.

The manufacturer, distributor and seller of beverages said the approval of the newly created Coca-Cola Beverages Africa will create the continent's largest soft-drink beverage operation.

The tribunal's approval of the merger follows agreements reached between the merger parties and the South African government, unions and the competition commission, the company said.

SABMiller said the merger parties have agreed to invest 800 million South African rand ($56.1 million) to support enterprise development for two groups of entrepreneurs. They will also create a ZAR400 million fund for enterprise development in the agriculture value chain, to support and train historically disadvantaged developing farmers and small suppliers, SABMiller said.

The parties will also make a ZAR400 million investment to develop downstream distribution and retail aspects of Coca-Cola Beverages South Africa, the company said.

Shares closed at 4217.50 pence valuing the company at 68.38 billion pounds ($100.06 billion).

Write to Olga Cotaga at [e-mail], Twitter @OlgaCotaga

(END) Dow Jones Newswires

May 10, 2016 12:39 ET (16:39 GMT)

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