Coca-Cola to record $1 billion charge on Africa bottling stake sale

Coca-Cola Co. expects to book an impairment charge of about $1 billion in the fourth quarter of 2025 as it prepares to sell part of its ownership in its African bottling operations, the company disclosed in a regulatory filing on Thursday.

The charge follows an announcement this week by Coca-Cola HBC, which agreed to acquire a 75% stake in Coca-Cola Beverages Africa (CCBA) for $2.6 billion, a deal that will make it one of the most influential beverage players on the continent once completed.

The Swiss-based bottler will purchase Coca-Cola’s roughly 42% stake as well as the entire holding of Gutsche Family Investments, valuing CCBA at about $3.4 billion, according to Reuters.

The transaction, expected to close by late 2026, would make Coca-Cola HBC the world’s second-largest Coca-Cola bottler by volume after Coca-Cola FEMSA, while significantly deepening its footprint across 14 African markets.

Coca-Cola HBC, which is listed in London and Athens, said it plans a secondary listing on the Johannesburg Stock Exchange to underscore its long-term commitment to Africa.

The company also retains an option to acquire Coca-Cola’s remaining 25% stake in CCBA within six years of closing.

Coca-Cola HBC stated that the move will enable it to capture faster consumption growth driven by Africa’s young population, while supporting its cost-management efforts amid concerns over U.S. tariff pressures.

Coca-Cola Co., headquartered in Georgia, reported strong third-quarter earnings this week, lifted by demand for zero-sugar beverages and Fairlife products in the U.S., as well as solid sales of carbonated drinks in select international markets.