Coca-Cola Europe to takeover Aussie peer Amatil after hiking offer price

The European arm of Coca-Cola has finalized its deal to takeover its Australian counterpart, Coca-Cola Amatil, by 75 percent. This has increased the company's market price as well stock value since last year. Coca-Cola European Partners (CCEP) announced on Monday that it was raising the acquisition offer by 6 percent up to A$13.5 per share, valuing the Australian company at A$9.93 billion ($7.70 billion).

Shares of Coca-Cola Amatil, which have been growing steadily, has hit an eight-year high of A$13.41 in response. Coca-Cola for long has long been outsourcing its bottling operations to separate regional operators. It owns 19 percent of CCEP and 31 percent of Amatil. The entity is now by far the largest by revenue, serving 13 countries in Western Europe.

This new offer boosts the total value of CCEP's takeover bid to $9.8 billion. It comes after the local business forecast a better-than-expected half-year result in January, with earnings for the 2020 calendar year set to come in at $550.7 million. Amatil said it had received legal and financial advice about the Australian operations' improved fortunes, including the fundamental value of the business, the company's recent trading update, interest rates, and shareholder feedback.

Amatil shareholders will meet in mid-April to approve the acquisition, which will require the approval of 75 percent of independent shareholders. The deal was given approval by Australia's foreign investment review board earlier this month.