Coca-Cola Co. expects to book an impairment charge of about $1 billion in the fourth quarter of 2025 as it prepares to sell part of its ownership in its African bottling operations.
- Coca-Cola Co. is set to record a $1 billion impairment charge in Q4 2025 due to the sale of part ownership in African bottling operations.
- Coca-Cola HBC agreed to acquire a 75% stake in Coca-Cola Beverages Africa (CCBA) for $2.6 billion, valuing CCBA at $3.4 billion.
- Post-acquisition, Coca-Cola HBC will become the second-largest Coca-Cola bottler globally by volume, expanding into 14 African markets.
- Coca-Cola HBC plans a secondary stock listing on the Johannesburg Stock Exchange to emphasise its commitment to Africa.
Coca-Cola Co. expects to book an impairment charge of about $1 billion in the fourth quarter of 2025 as it prepares to sell part of its ownership in its African bottling operations, the company disclosed in a regulatory filing on Thursday.
The charge follows an announcement this week by Coca-Cola HBC, which agreed to acquire a 75% stake in Coca-Cola Beverages Africa (CCBA) for $2.6 billion, a deal that will make it one of the most influential beverage players on the continent once completed.
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The Swiss-based bottler will purchase Coca-Cola’s roughly 42% stake as well as the entire holding of Gutsche Family Investments, valuing CCBA at about $3.4 billion, according to Reuters.
The transaction, expected to close by late 2026, would make Coca-Cola HBC the world’s second-largest Coca-Cola bottler by volume after Coca-Cola FEMSA, while significantly deepening its footprint across 14 African markets.
Coca-Cola HBC, which is listed in London and Athens, said it plans a secondary listing on the Johannesburg Stock Exchange to underscore its long-term commitment to Africa.
The company also retains an option to acquire Coca-Cola’s remaining 25% stake in CCBA within six years of closing.
Africa’s growth to offset cost pressures
Coca-Cola HBC stated that the move will enable it to capture faster consumption growth driven by Africa’s young population, while supporting its cost-management efforts amid concerns over U.S. tariff pressures.
Coca-Cola Co., headquartered in Georgia, reported strong third-quarter earnings this week, lifted by demand for zero-sugar beverages and Fairlife products in the U.S., as well as solid sales of carbonated drinks in select international markets.
