Jubilant Beverages gets CCI nod to buy Hindustan Coca-Cola stake
In a major development in the beverage industry, the Competition Commission of India (CCI) has approved Jubilant Beverages’ proposal to acquire a 40% stake in Hindustan Coca-Cola Holdings (HCCH). This move comes after Coca-Cola announced a strategic partnership with Jubilant Bhartia Group last year, selling a 40% stake in HCCH for a whopping ₹12,500 crore.
HCCH is a holding company with no independent activities in India and is part of the Atlanta-based The Coca-Cola Company group. The company’s primary function is to hold the shares of the Coca-Cola’s bottling arm, Hindustan Coca-Cola Beverages Private Limited (HCCBPL).
Jubilant Beverages, a leading Indian conglomerate, had proposed to acquire the 40% stake in HCCH from Coca-Cola in August 2022. The deal was subject to regulatory approvals, including the nod from the CCI.
The approval from the CCI is a significant development in the beverage industry, as it paves the way for Jubilant Beverages to become a strategic partner with Coca-Cola in India. The deal is expected to strengthen the company’s presence in the Indian market and increase its competitiveness in the beverage industry.
Jubilant Beverages has been expanding its presence in the beverage industry through strategic acquisitions and partnerships. The company has a strong presence in the Indian market, with a diverse portfolio of brands and products. Its partnership with Coca-Cola is expected to further enhance its portfolio and increase its market share in the country.
The CCI’s approval comes after a thorough review of the proposed deal. The competition watchdog has approved the deal subject to certain conditions, including the maintenance of Coca-Cola’s existing business operations and the continued supply of Coca-Cola products to the Indian market.
The deal is expected to have a positive impact on the Indian beverage industry, as it will increase competition and drive innovation. Jubilant Beverages’ partnership with Coca-Cola is expected to bring new products and services to the Indian market, which will benefit consumers.
The CCI’s approval is also expected to create new employment opportunities in the industry. The partnership between Jubilant Beverages and Coca-Cola is expected to create new job opportunities in the manufacturing, marketing, and distribution of Coca-Cola products in India.
In a statement, Jubilant Bhartia Group Chairman, Shyam Bhartia, welcomed the CCI’s approval of the deal. He said, “We are thrilled to receive the CCI’s approval for the acquisition of 40% stake in HCCH. This partnership with Coca-Cola is a significant milestone for our company and we look forward to working together to drive growth and innovation in the Indian beverage industry.”
The deal is expected to be completed soon, subject to the fulfillment of certain conditions. The partnership between Jubilant Beverages and Coca-Cola is expected to be a game-changer in the Indian beverage industry, and we can expect many exciting developments in the future.
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