In a bid to fast-track the antitrust probe, SABMiller and Coca-Cola struck a deal with the South African government earlier this month that included an R800 million investment to support small businesses and a three-year freeze on layoffs.
The Competition Tribunal said the deal can go ahead subject to several conditions. These include the enlarged group limiting job cuts to 250, providing business skills to 25,000 black retailers and ensuring it purchases cans, glass, sugar, fruits and crates from local suppliers.
The Coca-Cola Beverages Africa merger parties welcomed the Competition Tribunal’s approval saying in a statement they expect the transaction to complete as soon as practicable.
“Today’s announcement ensures that the creation of Coca-Cola’s largest bottling partner in Africa will strengthen our business while also closely aligning with the South African government’s national imperatives for social and economic development,” Coca-Cola Chief Operating Officer James Quincey said.
“This agreement marks the latest important step in that journey.”
Brewer SABMiller, which is in the process of being taken over by Anheuser-Busch InBev, agreed in November 2014 to team up with Coke and the South African owners of local bottler Coca-Cola Sabco to create Coca-Cola Beverages Africa.
