India’s Jubilant Bhartia Group has received approval from India’s competition watchdog to acquire a 40% stake in Hindustan Coca-Cola Holdings, of which The Coca-Cola Company’s Hindustan Coca-Cola Beverages is a subsidiary.
The Competition Commission of India (CCI) gave its nod to the deal yesterday (1 May).
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The transaction will see see Jubilant Bhartria’s drinks subsidiary Jubilant Beverages Limited takeover the stake from Hindustan Coca-Cola Overseas Holdings and Bharat Coca-Cola Overseas Holdings, according to the CCI’s statement.
The deal with Jubilant Bhartria was agreed in December, with no financial details disclosed.
However, Indian media reports at the time pegged its value between Rs100bn ($1.18bn) and Rs125bn ($1.47bn).
When the deal was signed, The Coca-Cola Company said the Indian conglomerate’s investment would “strengthen its position in the Indian market”.
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By GlobalDataSanket Ray, the president of Coca‑Cola’s India and South West Asia business unit also said the investment would “accelerate the CocaCola system”, allowing the company to “win in the market and provide greater value”.
Headquartered in Bangalore, Karnataka, HCCB operates across 12 states and 236 districts in South and West India. It runs 13 factories and sells 37 products under eight brands, including Coca-Cola, Thums Up, and Sprite.
Besides HCCB, Coca-Cola also operates in India through Coca-Cola India.
Separately from the deal with Jubilant Bhartria, in December, HCCB also agreed to sell its bottling operations in the Indian state of Jharkhand to Moon Beverages.
In a statement to Just Drinks at the time, Hindustan Coca-Cola Beverages said the deal is a “significant decision” as it aims to ensure the “right level” of investment across all areas of the business, while achieving both “scale and continuity”.
