SYDNEY/BENGALURU (Reuters) – Coca-Cola Co’s European bottler has made a A$9.28 billion ($6.6 billion) buyout approach to Australian peer Coca-Cola Amatil Ltd, a cut-price proposal that the target firm is backing due to uncertainty sparked by the coronavirus crisis.
The takeover by Coca-Cola European Partners PLC (CCEP) would be the biggest involving Australia this year, but prices the target company below its market valuation in February – before the COVID-19 pandemic began to rock global markets and plunged the world into recession.
The support from the Australians indicates expectations of an economic recovery that could take years, a bleaker view than that of some local economists who have pointed to improving economic indicators. Coca-Cola Amatil’s profit has been hit by shutdowns of restaurants and pubs since March. Read more…..
Chart of the Day
Australian shares fall as Coca-Cola Amatil receives a $9.3b takeover bid from its European counterpart, Coca-Cola European Partners (CCEP). However, Amatil has warned there is no certainty the offer will necessarily lead to a completed deal.