KEY POINTS:
MANILA - San Miguel, Asia's biggest food and drinks group is selling its 65 per cent stake in a soft drinks venture with Coca-Cola Co to the US giant for about US$700 million (just over $1 billion), industry sources said.
The sources said officials from both companies had shaken hands on the deal.
But the Philippines' second-largest listed group said yesterday it was still talking to Coca-Cola about a sale of Coca-Cola Bottlers Philippines Inc (CCBPI).
Coca-Cola owns 35 per cent of CCBPI, which has been been hit by a sales slump as consumers turn to non-carbonated drinks such as fruit juice and ice tea.
Coke and San Miguel opened talks on their CCBPI holdings early this year. Their five-year bottler's agreement, which covers royalty charges and bottling restrictions on Coke products, ended in July.
Analysts said a deal would be finalised in January and would involve a non-compete clause that would prevent the Philippine company selling fizzy drinks for five years.
CCBPI had first-half revenue of 19 billion pesos ($570 million), down 4 per cent from a year earlier.
- REUTERS
