Thursday, August 6, 2015

Coca-Cola bottlers in Europe fuses – FORTUNE

NEW YORK (EFE) – Coca-Cola announced Thursday the merger of three bottling into one company that will serve 300 million consumers in 13 European countries.

Coca-Cola Enterprises, Coca-Cola Iberian Partners, serving Spain, Portugal and Andorra, and Erfrischungsgetränke Coca Cola, the largest beverage company in Germany, will join operations in a company that will be called Coca Cola European Partners.

“Through world-class production, sales and distribution platforms in Western Europe, Coca-Cola European Partners will be positioned to deliver a performance and superior service as well as shareholder value,” he said in a statement.

The company denied that the merger has been made for tax purposes. “It is a strategic and operational agreement, is not nearly a transaction for tax purposes,” the CEO of Coca-Cola Enterprises, John Brock said in conference call.

The new company will move its headquarters to London under the command of Brock, as CEO, while Sol Daurella, current CEO of Coca-Cola Iberian Partners, will lead the board.

“This is a major milestone and a significant transaction that will benefit all parties,” said CEO of The Coca-Cola Company, Muhtar Kent.

The merger comes amid a decline in sales of soft drinks is impacting on the results of Coca-Cola, which seeks with this type of operations to reduce costs and be more efficient, as noted this day The Wall Street Journal.

The shareholders of Coca-Cola Enterprises will control 48% of the new Coca-Cola European Partners, while Coca-Cola Iberian Partners have 34% and 18% German bottler, according to company.

Once the operation is confirmed, it still needs the approval of regulators, the resulting company will have fifty plants across Europe and employs 27,000 workers.

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