Coca-Cola Europacific Partners (CCEP) has entered into a letter of intent to jointly acquire Coca-Cola Beverages Philippines (CCBPI) from the Coca-Cola Company for $1.8 billion with Aboitiz Equity Ventures (AEV).

CCEP and AEV have signed a non-binding Term Sheet regarding the acquisition of CCBPI, which CCEP said would offer a “great opportunity to co-acquire an established, well-run business”.

The non-binding letter of intent with the Coca-Cola Company implies an enterprise value (or CCBPI of $1.8 billion. CCEP would be the majority owner (60%), and it is expected to consolidate CCBPI on the acquisition date to establish a “non-controlling interest” representing AEV’s 40% minority interest.

The proposed acquisition would build on CCEP’s expansion into Australia, Pacific and Indonesia in 2021.

CCBPI would be managed by a board of five members – three appointed by CCEP and two by AEV.

The acquisition is subject to the satisfactory completion of due diligence, the parties concluding definitive agreements and the receipt of regulatory approvals.