Coca-Cola HBC Set to Expand into Faster-Growing African Markets

Coca-Cola HBC, a bottler serving Europe, Africa, and emerging markets, is set to acquire Coca-Cola Beverages Africa (CCBA), a major bottler on the continent.

The acquisition is expected to expand the company's footprint in faster-growing consumer markets where working-age populations are growing at roughly double the pace of those in Coca-Cola HBC's existing operations.

Analysts point to demographics driving the logic behind the acquisition, citing urbanization and rising incomes that can lead to increased demand for branded beverages.

The transaction is seen as attractive compared with peers on key valuation measures, and it's expected to contribute to earnings per share immediately even before any synergies are counted.