The merger of three European Coca Cola bottling companies is expected to save $350-375 million a year through supply chain benefits and operating efficiencies.
Coca-Cola Enterprises, Coca-Cola Iberian Partners, and Coca-Cola Erfrischungsgetränke are merging to form Coca-Cola European Partners Plc.
“The creation of a larger, unified Coca-Cola bottling partner in Western Europe represents an important step in our global system’s evolution,” said Muhtar Kent, chairman and chief executive officer of The Coca-Cola Company.
John Brock, chairman and chief executive officer of Coca-Cola Enterprises, will be CEO of the new company. He said: “We look forward to bringing together our world-class supply chain and sales team with the distinct strengths offered by CCIP and CCEAG to capture additional growth opportunities in each market. This transaction offers clear synergies, along with the scale to better serve the needs of our customers and consumers in Western Europe, to become an even stronger partner to The Coca-Cola Company and create increased value for CCE’s shareowners.”
Coca Cola European Partners will be headquartered in London. Coca-Cola Iberian Partners will own 34 per cent, while The Coca-Cola Company will have 18 per cent of the combined company. CCE shareowners will own 48 per cent.