Coca-Cola HBC Acquires CCBA

Coca-Cola HBC to Acquire Majority Stake in CCBA for African Market Dominance

Coca-Cola HBC is set to acquire a majority stake in Coca-Cola Beverages Africa (CCBA), a move that promises significant growth and dominance in the African market. The deal, valued at $2.6 billion, will see Coca-Cola HBC take control of 75% of CCBA. Meanwhile, labor disputes in Germany have led to a 16-hour warning strike by the NGG union, affecting over a thousand employees.

The acquisition, once closed, will cement Coca-Cola's dominance across Africa, reaching over half of the continent's population and controlling two-thirds of all Coca-Cola volume there. CCBA already accounts for 40% of Coca-Cola HBC's African sales and operates in 14 countries. Pro forma figures for 2024 indicate the combined entity's vast potential, with 4.0 billion unit cases, €14.1 billion in revenue, and €1.4 billion in EBIT.

In Germany, a 16-hour warning strike by the NGG union has brought four northern plants to a standstill. The union is demanding a 5% wage increase plus a €150 flat-rate bonus, retroactive to September, while the company has offered just 1.5% for 2026. Talks are scheduled for November 10–12 in Hamburg, with the potential for escalation to all 24 German sites if the company fails to meet the union's demands. Despite these labor disputes, Coca-Cola's stock remains steady at $68.46.

The acquisition of CCBA by Coca-Cola HBC promises significant growth and dominance in the African market. However, the ongoing labor disputes in Germany may pose challenges that could impact the company's operations and employee relations. The next round of talks between the company and the NGG union is scheduled for November, with the potential for further action if a resolution is not reached.