June 29, 2017 / 4:36 PM / 23 days ago

Coca-Cola says reaches agreement with South African government on acquisition of local arm

1 Min Read

Bottles of Coca-Cola are pictured during a news conference in Paris, France, April 20, 2017.Benoit Tessier

JOHANNESBURG (Reuters) - Drinks giant Coca-Cola said on Thursday it had reached an agreement with the South African government on a package of conditions as it finalises the purchase of a controlling 54.5 percent stake in its joint Africa venture with ABInBev.

New York-listed Coca-Cola said in a statement it would abide by merger conditions agreed with competition authorities in 2016 including a pledge to raise black ownership in Coca-Cola Beverages South Africa to 30 percent by 2021.

"We are pleased to have reached this agreement with the South African government which demonstrates our alignment with the government’s national imperatives for inclusive social and economic development," said Chief Executive James Quincey.

Last December, Coca-Cola reached a deal to buy Anheuser-Busch InBev's majority stake in their African bottling venture for $3.15 billion and hold onto it until it finds a new owner.

Reporting by Mfuneko Toyana; Editing by Adrian Croft

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