Coca-Cola in agreement with South Africa government on acquisition of local arm

The logo of U.S. beverage group Coca-Cola is seen at the entrance of a visitors center of Coca-Cola Schweiz GmbH in Bruettisellen, Switzerland.

Drinks giant Coca-Cola (KO.N) said on Thursday it had reached an agreement with the South African government on a package of conditions as it finalizes 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.

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