Categorized | News

Asahi to buy Schweppes Beverages in Australia

Cadbury and Asahi Breweries have entered into a definitive sale and purchase agreement for the Schweppes Beverages business in Australia for a total consideration in cash of approximately GBP550m.

In December 2008, Cadbury announced that it had entered into a conditional agreement with Asahi. The conditional agreement was subject to a right of negotiation granted to The Coca-Cola Company (TCCC) in 1999, under which TCCC had the right until March 2009 to negotiate with Cadbury regarding a potential acquisition of the Schweppes Australia business.

TCCC has confirmed to Cadbury that it does not intend to pursue its right of negotiation and consequently, Cadbury and Asahi have entered into a definitive sale and purchase agreement for the same cash consideration as previously announced.

In the fiscal year ending December 2007, after adjustment for terminated contracts, the business of Schweppes Australia to be acquired by Asahi, generated revenue of AUD49m and earnings before interest, tax, depreciation and amortization of AUD78m.

The agreement with Asahi is subject to normal closing conditions, which do not include financing or competition authority clearance conditions. Cadbury expects that the pre-conditions to closing will have been satisfied by April 30, 2009.

Tags | , , , , ,

Tuesday, December 12, 8:30 am

Search by Tag