Coca-Cola acquires controlling stake in j.v. with Kerry Group

by Staff
Share This:

HONG KONG — The Coca-Cola Co. has acquired a controlling stake in Kerry Beverages Ltd., its bottling joint venture with the Kerry Group, a conglomerate based in Hong Kong.

K.B.L. was formed by Coca-Cola and the Kerry Group in 1993, and has majority ownership in 11 joint ventures that manufacture and distribute products of The Coca-Cola Co. across nine provinces in China. K.B.L. also has a minority interest in the joint venture bottler for Beijing.

After the deal, Coca-Cola will hold 89.5% of K.B.L., and will have agreed to purchase the remaining 10.5% interest by the end of 2008 at the same price per share as the initial purchase plus interest. Coca-Cola will have all voting and economic rights over the remaining shares. The other terms of the transaction remain confidential.

The Bottling Investments Group, which manages Coca-Cola’s bottling operations, will lead the management of K.B.L. The existing management team of K.B.L. will continue to play a critical role to ensure a smooth operation of the bottling operations.

Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.

The views expressed in the comments section of Food Business News do not reflect those of Food Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.