According to reports, United States’ soft drink producer, Coca-Cola is planning to exit the African market.
Coca-Cola is considering the exit alternative after it held talks with potential partners.
It has been reported by Bloomberg that Coca-Cola is contemplating an outright sale or initial public offering in the African market but the exact location where the initial public offering will take place (if it is the company’s final decision) has not been stated.
However, sources close to the Coca-Cola’s internal operations revealed a sale and initial public offering is on the table.
The insider remarked that Coca Cola’s estimated market value of Coca-Cola could change depending prospective buyers’ level of interest.
The American company possesses 66.5 percent market share of the African subsidiaries, one of which is Coca-Cola Nigeria.
However, uncertainties still surround the exit talks.
It was reliably gathered that part of the reasons why Coca-Cola is planning its exit from African market is the urge to reduce the amount of capital it invested in Africa after the unprecedented COVID-19 pandemic affected Africa and global trade.
