EUROPE: Coca-Cola bottlers confirm merger plans | Progresiv
Three of Coca-Cola’s main bottlers in Europe have confirmed that they will merge their operations, continuing a trend over the past few years. The announcement comes after reports earlier this week said the groups would merge, in order to streamline operations and save costs. 
The deal will see Coca-Cola Enterprises (CCE) join forces with German subsidiary (CCEAG) and Coca-Cola Iberian Partners (CCIP). The new entity, to be called Coca-Cola European Partners (CCEP), will have combined annual revenues of around 12.6 billion dollars, and expects to save costs of up to 375 million dollars within three years.
The deal is being structured as a ‘tax inversion’, which will see CCE shifting headquarters from the US to London to avoid higher taxes. The deal will see CEE shareholders own a 48% stake in the new company, with CCIP holding 34%, and Coca-Cola Co. taking an 18% stake.
Muhtar Kent, CEO of Coca-Cola, noted: “It's a major milestone and major transaction that will benefit all parties involved.” (www.kamcity.com)
