Coco-Cola is buying up roughly half of Saudi Arabia’s Aujan Industries in a deal that will cost almost US$ 980mn, the companies announced yesterday.
The purchase will give Coca-Cola a stake in one of the Middle East’s leading soft drinks businesses and provide Aujan with a way of accelerating the international growth of its brands.
"Our brands are already present in 70 countries, and this new relationship will potentially take our brands to many more markets that Coke operates in around the world,” said Sheikh Adel Aujan, chairman of Aujan, in a statement.
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“This transaction also provides us with capital to expand our manufacturing capacity to meet growing demand for our brands like Rani and Barbican, and to further invest in our business"
Aujan is one of the 100 biggest companies in Saudi Arabia with an annual revenue of more than US$850 million, the statement said.
The Middle East is one of the few regions that sales fall lower than those of PepsiCo Inc and the deal is one that will step up Coca-Cola’s bid in the fight to become market leader.
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