ALEXANDRIA, Va.—Hong Kong-based Swire Pacific is buying Coca-Cola’s bottling operations in Vietnam and Cambodia for US $1.015 billion in cash, reports South China Morning Post. The agreement is subject to antitrust approval and will take place within six months after the deal is finalized.
The purchase will expand Swire Pacific’s presence in the rapidly growing Southeast Asian beverage market. Swire will buy Coca-Cola Indochina through its two wholly owned subsidiaries, Swire Beverages Holdings and Swire Coca-Cola, from Coca-Cola (Japan).
“The transactions will be Swire Pacific’s first investment in the beverages market in Southeast Asia, and will expand the group’s beverages business into one of the most rapidly growing beverages markets,” the company said in the filing.
Swire Coca-Cola is the principal investment holding company for the Swire Pacific’s soft drink businesses in mainland China and Hong Kong and is one of the largest Coca-Cola bottlers in the world. It has exclusive rights to manufacture, market and distribute Coke products in most provinces of mainland China, Hong Kong, Taiwan and part of the western United States.
Swire Coca-Cola says it currently manufactures 62 beverage brands and distributes them to a market covering 762 million people.