Coca-Cola Co. on Wednesday announced an agreement to sell a 40% stake in Hindustan Coca-Cola Holdings Pvt. Ltd., the parent company of the largest Coca-Cola bottler in India, Hindustan Coca-Cola Beverages Pvt. Ltd., to the Jubilant Bhartia Group.
Though the company has not disclosed the amount of the deal, some media reports have pegged it at around Rs 10,000 crore, according to PTI report.
The transaction is subject to regulatory approval. Rothschild & Co acted as the exclusive financial adviser to Coca-Cola in the deal.
These changes and investment represent a significant milestone for Coca-Cola as the company continues to pursue its purpose to refresh the world and make a difference, the statement said.
The Atlanta-headquartered firm is divesting bottling operations globally as part of its asset-light strategy.
”We welcome Jubilant Bhartia Group to the Coca- Cola System in India. With its diverse experience in various sectors, Jubilant brings decades of rich experience that will help accelerate the Coca-Cola system, enabling us to win in the market and provide greater value to local communities and consumers,” Coca-Cola India President Sanket Ray said while commenting on the development.
India is the fifth largest market of Coca-Cola globally.
”This strategic investment represents an important milestone in our journey. Jubilant Bhartia Group's expertise, complements our strengths, ensuring that we continue delivering exceptional value to our stakeholders while driving innovation and sustainable progress.” Hindustan Coca-Cola Beverages CEO Juan Pablo Rodriguez said.
(With inputs from PTI.)
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