Turkish company buys Coca-Cola Bangladesh for $130 milion

Turkish beverage company Coca-Cola Icecek (CCI) has signed a deal to acquire Coca-Cola Bangladesh Beverages Ltd (CCBB) for $130 million. CCBB is one of the two bottlers in Bangladesh involved in the production, sale, and distribution of Coke brands in the country. The acquisition is expected to be financed by CCI International Holland BV’s existing cash resources and will have a modest impact on CCI’s net leverage.

The deal is expected to be closed following regulatory approval in Dhaka. Bangladesh’s soft drink market, which is estimated to be worth Tk 4,000 crore-Tk 6,000 crore, is catered by two US-based soft drink makers Coca-Cola and Pepsico, along with several local beverage makers such as Pran, Akij, and Partex.

According to CCI, the non-alcoholic ready-to-drink market in Bangladesh is expected to register a 12 percent annual average growth in the decade to 2032.

CCI has operations in 11 Muslim-majority countries and aims to enter a market with significant future potential through the acquisition of CCBB. Bangladesh’s economy grew by an average of 6.5 percent annually between 2012 and 2022 and is expected to expand at an average annual rate of 6.7 percent between 2023 and 2028. CCBB serves about 10 crore consumers in the Rangpur, Rajshahi, Mymensingh, and Dhaka regions.