San Miguel Corp., the Philippines' largest food and beverage conglomerate, signed an agreement with The Coca-Cola Co. on Thursday to sell its 65-percent stake in their joint venture bottling company, the two companies said.
The $590 million deal involving Coca-Cola Bottlers Philippines Inc. caps a series of negotiations between the two parties that started early last year.
"We are grateful to San Miguel Corp. for its continuing support of our long-term commitment to the Philippines," Coca-Cola President and Chief Operating Officer Muhtar Kent said after the signing ceremony.
"This is a very important market for us, and we believe our business here has great growth potential," Kent said. "Our business in the Philippines will now be fully integrated with our company's overall objectives. It will benefit from full access to our company's management expertise in helping to operate the bottling businesses."
San Miguel was previously the majority shareholder of CCBPI and had management control of the bottler.
"This transaction provides San Miguel Corp. the opportunity to focus on its core business areas in the Philippines and its planned expansion throughout the region," said Eduardo M. Cojuangco Jr., chairman and chief executive officer of San Miguel.
San Miguel said it will develop its own domestic beverage business, producing juice drinks and ready-to-drink teas, to complement existing operations in Thailand and Indonesia.
source:www.chron.com
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment