The Common Market for Eastern and Southern Africa (Comesa) has approved the transaction between Coca-Cola Beverages Africa (CCBA) and Castel Malawi, in a business move where the former is acquiring the latter’s soft drinks business.
A statement issued by CCBA states that the company will start operating in Malawi as soon as other regulatory requirements are concluded.
“Coca-Cola Beverages Africa anticipates commencing operations in Malawi as soon as all regulatory requirements have been successfully concluded. Once operations commence, the soft drinks business will have its head office in Lilongwe. Both Blantyre and Lilongwe plants will serve as production, distribution and logistics sites for the newly-formed Coca-Cola Beverages Africa subsidiary,” the statement reads.
It further states that CCBA seeks to make use of its experience in the soft drinks business to make improvements in the category.
“Malawi is a new territory for Coca-Cola Beverages Africa which has a strong track record in the soft drinks category on the continent and is committed to sustainable growth in existing and new territories,” the statement concludes.
In May this year, Castel Malawi announced in a statement that it had sold Southern Bottlers Limited (Sobo) to Coca-Cola Beverages Limited, a subsidiary of CCBA.
The statement disclosed that the deal would be complete after approvals from Comesa, Malawi Revenue Authority and Malawi Bureau of Standards.
Once the deal is complete, Castel will only produce and distribute alcoholic beverages like Malawi Gin and Carlsberg Green.