10th May 2016 17:28
LONDON (Alliance News) - SABMiller PLC, along with the other parties involved the Coca-Cola Beverages Africa, Tuesday welcomed approval from the South African Competition Tribunal for the formation of its African soft-drink operation.
The parties, including the Coca-Cola Co and Gutsche Family Investments, have previously reached agreements with the South African Government, unions and the Competition Commission on a set of commitments ensuring the formation of the Coca-Cola bottling partner helps support economic and social development in South Africa.
The merger parties have agreed to invest ZAR800 million to support enterprise development for two groups of entrepreneurs. They will create a ZAR400 million fund for enterprise development and a ZAR400 million incremental investment to develop downstream distribution and retail aspects of Coca-Cola Beverages South Africa.
"The creation of Coca-Cola Beverages Africa is more than the creation of a company with common interests and a long term growth plan: the merger is set to deliver demonstrable benefits to South Africa by way of significant inward investment and additional tax revenues, job creation and a number of specific benefits that address the national imperatives of SMME creation, local procurement, transformation, and growth in the agricultural sector," said Chief Executive Officer Alan Clark in a statement.
Shares in SABMiller closed down 0.2% at 4,216.87 pence Tuesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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