The Coca-Cola Company, SABMiller and Gutsche Family Investments (GFI) are planning to combine their non-alcoholic ready-to-drink beverage bottling operations in southern and eastern Africa.

Coca-Cola Beverages Africa, the new bottler, will have the capacity to cater to 12 countries, accounting for approximately 40% of all Coca-Cola beverage volumes in Africa.

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SABMiller will own a 57% stake in the proposed merger, while GFI will hold 31.7% and the remaining 11.3% will be owned by The Coca-Cola Company.

The merger, which will be completed in two phases, will include SABMiller’s South African soft drinks bottling businesses.

"SABMiller plans to include its Swaziland soft drinks business and those of its listed subsidiaries in Botswana and Zambia in future."

GFI will contribute its bottling interests in Coca-Cola Sabco, including its South African bottler Coca-Cola Fortune, and its bottling operations in six other African countries.

Coca-Cola Beverages Africa will also bring together The Coca-Cola Company’s South African soft drinks businesses in the form of Coca-Cola Canners, Valpré and Coca-Cola Shanduka Beverages.

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It will initially produce and distribute Coca-Cola beverages in nine countries, namely South Africa, Kenya, Ethiopia, Mozambique, Tanzania, Uganda, Namibia, Comoros and Mayotte.

SABMiller plans to include its Swaziland soft drinks business and those of its listed subsidiaries in Botswana and Zambia in future.

As part of the transaction, The Coca-Cola Company will also acquire SABMiller’s Appletiser brands, as well as 19 other non-alcoholic ready-to-drink brands in Africa and Latin America, for $260m.

SABMiller will, however, retain ownership of its non-alcoholic malt beverages in Africa and Latin America, as well as its Coca-Cola franchises in El Salvador and Honduras.