4th May 2016 07:04
LONDON (Alliance News) - SABMiller PLC on Wednesday said it has agreed a "comprehensive set of commitments" with the Coca-Cola Co, Gutsche Family Investments and the South African government, regarding the proposed creation of Africa's largest soft drink beverage bottling operation.
SABMiller, the Coca-Cola Co and Gutsche Family Investments together make up Beverages Africa (CCBA), a merged entity created in 2014 for the purpose of combining bottling operations of their non-alcoholic ready-to-drink beverages businesses in Southern and East Africa.
The agreements signed between CCBA and the South African government will be recommended to the competition tribunal in connection with the creation of the merged bottling operations, and address concerns regarding employment, access to retail cooler space for smaller competitors, localisation of production and inputs used in the production of Coca-Cola products and Appletiser brands, economic empowerment and the location of the headquarters.
The merger parties undertook to ensure that the merged entity maintains its total permanent employment at current levels for a period of three years from the date of approval of the deal, that employees in the bargaining unit will not be subjected to involuntary retrenchment as a result of the merger and that retrenchments of senior management staff be limited.
The parties also agreed to invest ZAR800 million to support enterprise development in the agriculture value chain for historically disadvantaged developing farmers and small suppliers of inputs to Appletiser and CCBSA products, as well as to develop downstream distribution and retail capabilities with associated skills development and training.
"I am very happy that we have reached this agreement and hope we now have a clear path to the conclusion of this transaction and the creation of Coca-Cola Beverages Africa. As the location of CCBA's headquarters, South Africa will be the heart of this business and our belief is that our commitments will provide a strong footing from which the business will flourish in South Africa and across the continent," SABMiller Chief Executive Alan Clark said in a statement.
The competition tribunal is due to commence on May 9.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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