Merger Alert: Tribunal approves Coca-Cola bottling merger with conditions; and CFAO Mobility’s acquisition of Morgenrood Auto

Competition Tribunal Approves Coca-Cola Bottling Merger with Conditions

The Competition Tribunal (“Tribunal”) has approved a merger involving the Coca-Cola bottling business in Africa, as Coca-Cola HBC AG and Coca-Cola HBC Holdings B.V. recently sought approval to acquire sole control of Coca-Cola Beverages Africa (Pty) Ltd (“CCBA”).

The Tribunal approved the transaction subject to conditions aimed at addressing various public interest considerations. The approval follows a hearing at which the Tribunal heard oral submissions from the Commission and the merger parties, as well as the National Union of Food, Beverage, Wine, Spirit and Allied Workers, which represents CCBA employees; and former owner-drivers, including owner drivers who are former Amalgamated Beverage Industries (“ABI”) employees who later became owner-drivers under ABI’s Owner-Driver Scheme. These third parties participated in the proceedings with regard to public interest issues.

Coca-Cola HBC AG is listed on both the London Stock Exchange and the Athens Exchange, while Coca-Cola HBC Holdings B.V. is its wholly owned subsidiary. They are incorporated in Switzerland and the Netherlands, respectively. Together with their subsidiaries, they form part of a group authorised to  bottle for The Coca-Cola Company’s (“TCCC”) products across Europe, Eurasia and Africa.

CCBA, incorporated and headquartered in South Africa, is an investment holding company with interests in the carbonated and non-carbonated soft drink industry. It controls bottling subsidiaries authorised to prepare, package, distribute and sell Coca-Cola branded beverages, as well as other authorised brands in specific regions across Africa.

Tribunal approves CFAO Mobility’s acquisition of Morgenrood Auto

The Tribunal has unconditionally approved a merger in which CFAO Mobility (Pty) Ltd (“CFAO Mobility”) will acquire the dealership business of Ben Morgenrood Auto CC (“Morgenrood Auto”) as a going concern. Following the transaction, CFAO Mobility will control Morgenrood Auto.

CFAO Mobility is part of a broader mobility group with operations spanning the automotive value chain. Its activities include the sale and rental of new and used vehicles, trucks and automotive components, as well as logistics, material handling, manufacturing and assembly. The group operates a network of franchised dealerships throughout South Africa, offering new and pre-owned vehicles, parts, accessories and after-sales services. It also assists customers with acquiring credit, insurance products, fleet management services and car rental.

Morgenrood Auto sells new and used passenger and light commercial vehicles. The dealership also provides scheduled maintenance and spare parts, and acts as an intermediary for vehicle-related financial services.