As per reports, Coca-Cola Beverages South Africa (CCBSA) will increase the stake held by black empowerment investors and employees in the company to 20%, in a bid to meet merger conditions specified by competition authorities.
The Coca-Cola Company and SABMiller Plc reached an agreement in 2014, under majority shareholder to combine the bottling operations of non-alcoholic beverage businesses in East and Southern Africa, leading to the parent company, Coca-Cola Beverages Africa (CCBSA). The merger required the parties to increase black economic empowerment (BEE) ownership of Coca-Cola Beverages Africa (CCBSA), as per the government rule laid to reverse decades of economic exclusion of black people under apartheid.
Under the scheme called Black Economic Empowerment (BEE), companies in South Africa are required to meet rules of a which allows black investors and employees to hold equity in the company making the company more likely to qualify for government tenders.
Velaphi Ratshefola, CCBSA Managing Director, and Ebrahim Patel, Minister of Trade, Industry, and Competition stated that the deal will witness nearly 8,000 employees increase in their current holding of around 5% in CCBSA to an approximate 15% shareholding. CCBSA will also contribute $5.39 million per year for three years to fulfill the government’s localization initiatives.
Dow 30 Component, The Coca-Cola Company (KO), is the largest total beverage company in the world. It offers 500 plus brands in over 200 countries and is committed to reducing sugar in its drinks and providing new and diverse drinks to people everywhere. To learn more about The Coca-Cola Company (KO) and to continue to track its progress please visit the Vista Partners Coca-Cola Company Coverage Page.
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