PHILIPPINES: Analysts doubt Coca-Cola Amatil will agree to San Miguel proposal
There are major doubts that Coca-Cola Amatil will sell back its Philippines bottling business to one of its major shareholders, brewing giant San Miguel.Apparently San Miguel has made an informal proposal to buy back Coca-Cola Bottlers Philippines for between $1 billion and $2 billion. But according to analysts the market is likely to react badly to any sale, especially as the value suggested is a far cry from the price CCA paid when it bought the business from San Miguel and Coca-Cola Co, three years ago. The proposal by San Miguel follows a 10% slump in consumption of Coca-Cola in the Philippines in 1999, a slump which CCA says is due to a general downturn in consumer confidence.A CCA spokesman said: "no proposal has been put to us." He continued by saying that CCA is forecasting an eventual return to sales growth in the Philippines, which had been 33% two years ago. San Miguel received 220 million CCA shares for its 70% stake in the company and the market was a major one for CCA, making up about 40% of its total sales.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-drinks gives you the widest beverage market coverage.
Paid just-drinks members have unlimited access to all our exclusive content - including 14 years of archives.
I am so confident you will love complete access to our content that today I can offer you 30 days access for $1.
It’s our best ever membership offer – just for you.
Olly Wehring, editor of just-drinks
- Analysis - Remy's Cognac "dead-cat bounce"
- Comment - How Hand-Made is Tito's Handmade Vodka?
- Heineken to stay "active player" in beer M&A - CFO
- Diageo's future brighter than present suggests
- Diageo's Q1 Results by Region
- Moët Hennessy unveils first Travel Retail outlet
- United Spirits sees Q1 net loss
- Beam Suntory, Edrington part ways in Travel Retail
- Diageo puts Beckham centre stage in Haig Club ad
- Smirnoff Ice gets India launch