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    Coca-Cola Europe Bottler in Talks for Record Australian Deal

    (Bloomberg) -- Coca-Cola European Partners Plc, the world’s largest independent bottler of the storied soft drink, is in talks to acquire Coca-Cola Amatil Ltd. to expand in Asia Pacific, according to people familiar with the matter.Negotiations between the European and Australian bottlers are advanced and could be announced within days, said the people, who asked not to be identified because the matter isn’t public. Details, including on the structure of the deal, are still being finalized and talks could yet fall apart, the people said.Coca-Cola Amatil, based in North Sydney, has a market value of about A$7.8 billion ($5.6 billion). The company’s shares were halted on Oct. 23 pending an announcement on a “potential material transaction.” U.K.-based Coca-Cola European Partners has a market value of about $17.7 billion.A deal between the two bottlers would be the largest involving an Australian company so far this year, according to data compiled by Bloomberg. A representative for Coca-Cola European Partners couldn’t be immediately reached, while Coca-Cola Amatil declined to comment.The talks underscore how soft drink bottlers are under pressure to consolidate as the popularity of sugary drinks declines, as well as because of the disruptions caused by the coronavirus pandemic. Coca-Cola European Partners decided early this year to halt its buyback program and defer a dividend to preserve cash.Coca-Cola European Partners is interested in a majority acquisition of Coca-Cola Amatil, though some of the people said it’s also previously discussed asset purchases.Coca-Cola European Partners is the world’s largest Coca-Cola bottler by revenue, with 48 production sites in Germany, Spain, Great Britain and elsewhere, according to a fact sheet on its website.Coca-Cola Amatil is a dominant player in the Asia Pacific region, with 32 production facilities in Australia, New Zealand, Fiji, Indonesia and Papua New Guinea, according to its website.The company has been named as a potential bidder for Australian liquor assets being sold by Japan’s Asahi Group Holdings Ltd., which could require a capital raise, according to analysts at Citigroup Inc.Coca-Cola European Partners was created from the three-way merger of Coca-Cola Enterprises Inc., Coca-Cola Iberian Partners and Germany’s Coca-Cola Erfrischungsgetranke AG agreed in 2015. The biggest shareholder is Cobega, an investment vehicle belonging to Spain’s Daurella family, followed by the American soda maker Coca-Cola Co., Bloomberg data show.(Adds deal ranking in fourth paragraph and company history in final paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Top Canada Pension Fund Hunts for Deals In ‘Cheap’ Travel Sector

    Top Canada Pension Fund Hunts for Deals In ‘Cheap’ Travel Sector

    (Bloomberg) -- Canada’s national pension fund is looking at deals in the travel industry, confident that it will enjoy a strong recovery when the Covid-19 pandemic eases, says its chief executive.“Hotels aren’t over, cruises aren’t over, flying’s not over -- these things are going to come back,” Mark Machin, CEO of Canada Pension Plan Investment Board, said Friday in an interview with Bloomberg. “So I’m supportive of teams if they find decent opportunities in those areas.”The country’s largest pension fund, which has C$434 billion ($331 billion) of assets under management, hasn’t made any investments in the sector since the pandemic hit but is “keenly looking at some things,” Machin said. More than 20% of the fund is in private equity.Its private holdings include ownership stakes in Spain’s Hotelbeds Group SL and Britain’s Merlin Entertainments Ltd., which runs Legoland theme parks and other attractions in 25 countries. It’s also an investor in Las Vegas-based Diamond Resorts International Inc., which it acquired as part of Apollo Global Management Inc.’s takeover of Diamond in 2016.“Valuations are quite cheap. We’ve never bought an airline so I’m not suggesting we’d invest in airlines at this point,” Machin said. But other firms are -- Bain Capital LP rescued Virgin Australia Holdings Ltd. in a deal with creditors to restructure the business, which fell into administration in April.That doesn’t mean there aren’t other opportunities. Machin said it’s unlikely that travel and hospitality-related companies will see their business recover to pre-pandemic levels soon, even if pharmaceutical companies are successful in producing a Covid-19 vaccine next year. It will take a while for public confidence to grow, he said -- but it will recover.“I personally am a believer in us all being social beings,” Machin said. “I don’t think we’re all going to be sitting isolated for the rest of our lives.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.