Coca-Cola Co acquired half the equity in Aujan Industries, a Saudi-based beverage business, for $980 million to expand its non-alcoholic beverages in the Middle East.
As per the deal, Coca-Cola will have 50 percent stake in the entity with rights to Aujan?s brands and 49 percent stake in its bottling and distribution firm.
Ahmet Bozer, president of Coca-Cola for Eurasia and Africa, said the Middle East region is poised for growth. Aujan chairman Adel Aujan told mdeia that he hoped to double the profit within five years. Aujan Industries posted $800 million for the current year.
Majority of sales for Aujan?s brands come from outside the Kingdom. The company also faces tight competition from international brands. Aujan Industries said it now foresees a bright future for their brands thanks to the new deal.
The agreement, however, excludes Arjan?s Iranian manufacturing and distribution business. The transaction is expected to finalise in the first half of 2012.
Source: Kipper report