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CCI clears Jubilant Beverages’ 40% stake acquisition in HCCH, marking a key strategic move in India’s beverage sector
CCI clears Jubilant Beverages’ 40% stake acquisition in HCCH
The Competition Commission of India (CCI) has approved the proposed acquisition involving Jubilant Beverages Limited (JBL). Under the transaction, JBL will acquire a 40% shareholding in HCCH, marking a significant strategic move in the beverage and consumer goods sector.
In December, Coca-Cola announced a strategic agreement with the Jubilant Bhartia Group to divest a 40% stake in Hindustan Coca-Cola Holdings (HCCH), the parent entity of Hindustan Coca-Cola Beverages (HCCB) — the company’s largest bottling arm in India.
Sources familiar with the deal, who have signed non-disclosure agreements, earlier told News18 that the transaction is valued at approximately Rs 12,500 crore, placing HCCB’s total valuation at around Rs 31,250 crore.
Sanket Ray, President of Coca-Cola India and Southwest Asia, in a press note, had said Jubilant’s expertise would help accelerate the Coca-Cola system’s growth and deepen its value to consumers and communities. The partnership aligns with Coca-Cola’s global asset-light strategy, which involves refranchising its bottling operations.
Jubilant Bhartia Group, advised by Morgan Stanley, is expected to fund the deal in partnership with Goldman Sachs, with Jubilant contributing around 40% of the capital.
HCCB, which operates primarily in South and West India, manufactures and distributes 60 beverages, including Coca-Cola, Thums Up, Sprite, Minute Maid, Maaza, and Kinley. In FY24, HCCB reported a 10.1% increase in revenue to Rs 14,021.54 crore and a threefold rise in net profit to Rs 2,808.31 crore.
Jubilant FoodWorks, part of the Bhartia Group, operates franchise rights for Domino’s, Dunkin’, and Popeyes in India.
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