Jubilant Bhartia Group, in partnership with investors backed by Goldman Sachs, have sought the Competition Commission of India (CCI) nod for the proposed acquisition of a 40 per cent stake in Hindustan Coca-Cola Holdings Private Ltd (HCCH).
The deal, which has been submitted to the competition watchdog for approval, aligns with The Coca-Cola Company’s strategy to gradually divest its bottling operations worldwide.
The transaction involves Jubilant Beverages Ltd (JBL) acquiring 40 per cent of HCCH from Hindustan Coca-Cola Overseas Holdings Pte. Ltd. and Bharat Coca-Cola Overseas Holdings Pte. Ltd.
Additionally, Jubilant BevCo Ltd (BevCo) and the investors will subscribe to compulsorily convertible preference shares in JBL. This move is expected to strengthen Jubilant Bhartia Group’s position in India’s food and beverage sector, leveraging its extensive experience in consumer-driven businesses.
The investors, WSSS Investments Aggregator 1 Pte. Ltd. and WSSS Investments Aggregator 2 Pte. Ltd., are managed by Goldman Sachs Asset Management (GSAM), a subsidiary of Goldman Sachs Group, Inc.
HCCH, the target company in this transaction, is a holding entity under The Coca-Cola Company, with Hindustan Coca-Cola Beverages Private Ltd (HCCB) as its subsidiary. HCCB is responsible for the production, packaging, and distribution of Coca-Cola products in India, including those under the Monster Energy brand.
The transaction falls under Section 5(a) of the Competition Act, 2002. It is not expected to alter market competition significantly, as it does not lead to a substantial shift in competitive dynamics. Jubilant Bhartia Group views this investment as a long-term strategic move that aligns with its broader vision for the food and beverage industry in India. The company is confident that its expertise in consumer markets will add value to the target’s operations.
From a market perspective, the transaction is relevant to the preparation and sale of non-alcoholic beverages, as well as the provision of food services in India.
The deal is now awaiting regulatory approvals, including clearance from the CCI. If approved, this investment could reshape the beverage industry in India, reinforcing Jubilant Bhartia Group’s presence and further advancing Coca-Cola’s transition away from direct bottling operations, economy watchers said.
