Aboitiz Equity Ventures Inc. and Coca-Cola Europacific Partners Plc on Monday announced that they agreed to jointly acquire Coca-Cola Beverages Philippines Inc. for $1.8 billion under certain terms as they look forward to fully realizing the transaction by the first quarter next year.

Based on their definitive agreement, AEV will have 40 percent stake while the remaining 60 percent goes to CCEP, the former's disclosure to the Philippine Stock Exchange revealed yesterday.

Cash-free, debt-free

The acquisition will be facilitated on a cash-free and debt-free basis, which means Coca-Cola Beverages cannot transfer debt obligations to the new owners but can retain cash earnings prior to the completion of the acquisition.

"Final cash consideration will be subject to cash, debt-free items and working capital adjustments at completion of the transaction," AEV said.

AEV and CCEP have yet to obtain clearance from the Philippine Competition Commission to complete the acquisition.

Portfolio diversification strategy

"The proposed acquisition would build on AEV's portfolio diversification strategy to enter the branded consumer goods space. AEV is well positioned to support Coca-Cola Beverages' growth ambition due to the synergies which could be generated from AEV's other business interests in the country," AEV said.

The company added it can harness opportunities from CCEP's expansion into Australia, the Pacific and Indonesia in 2021.

AEV is a local conglomerate with investments in power, banking and financial services, food, infrastructure, land and data science and artificial intelligence.

Meanwhile, CCEP distributes consumer goods globally through two million partners in 30 countries.