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Coca-Cola to buy 29% stake for $500m in Indonesia operations

DBR Staff Writer Published 31 October 2014

Coca-Cola has agreed to acquire 29.4% stake in Coca-Cola Amatil's (CCA) Indonesian operations, in a $500m deal.


An agreement to this effect was signed between the two companies.

The investment will be used for the expansion of CCA Indonesia's (CCAI) production, warehousing and cold drink infrastructure, a move that will back its long-term growth in the market.

CCAI will also utilize Coca-Cola's investment to expand its product portfolio.+

CCA Group managing director Alison Watkins said: "With a population of more than 240 million and a fast-growing emerging middle class, Indonesia is a key growth market for CCA.

"In partnership with The Coca-Cola Company, we have developed a plan to support upweighted infrastructure and capability development to enable us to strengthen our market position for the long-term and generate returns above the cost of capital for CCAI."

CCA will continue to operate and manage CCAI, under the terms of the agreement. The transaction is subject to CCA shareholder approval.

CCAI plans to transform its route-to-market model to increase access to the traditional trade and expand its footprint.

Image: The investment will be used to expand CCA Indonesia's (CCAI) production, warehousing and cold drink infrastructure. Photo: courtesy of The Coca-Cola Company.