The Competition Commission of Pakistan (CCP) has approved the acquisition of Coca-Cola (Pakistan) by Coca-Cola İçecek (Turkey) in a $300 million deal.
Under the terms of the deal, Coca-Cola İçecek (Turkey) acquired a 49.67% shareholding of Coca-Cola (Pakistan) through CCI International Holand (one of its subsidiaries) from Atlantic Industries.
The deal gives Coca-Cola İçecek (Turkey) majority ownership and management control of Coca-Cola (Pakistan). Following the share transfer, CCI (Turkey) will, directly and indirectly, own a 99.34% stake in Coca-Cola Beverages Pakistan Limited (CCBPL).
Move to boost economy
The acquisition is seen as a significant vote of confidence in the Pakistani economy and its potential for above-average returns on capital for international investors. It also reflects the ongoing efforts of the Pakistani government and regulatory bodies to attract foreign investments.
“This development signifies a significant vote of confidence in Pakistan’s economic capabilities and growth prospects” stated CCP chairman, Dr Kabir Sidhu. “Our streamlined merger systems and processes have facilitated this transaction, emphasizing our commitment to fostering international investments in Pakistan, ” he added.
The acquisition is expected to have a positive impact on the Pakistani economy, creating new jobs and boosting economic growth. It is also expected to lead to improved quality and innovation of Coca-Cola products in Pakistan.