(Ecofin Agency) - South Africa will finally have its biggest Coca-Cola producer. South African competition authority has indeed approved of the merger of assets of soft drinks dealer Coca-Cola and SABMiller. However, the approval comes with a few conditions, Reuters reports.

The firm, in addition to investing $53 million to support small enterprises and freezing job cut over three years, will have to improve business skills of 25,000 of black distributors and supply glasses, cans, sugar, fruits and boxes to local providers. Regulator’s approval comes 19 months after Coca-Cola, Coca-Cola Sabco (subsidiary of Atlanta-based firm) and SABMiller have agreed to establish Coca Cola Beverages Africa.

The company which will sell 40% of drinks from Pemberton in Africa will be based in South Africa and serves 12 countries, located in the Southern and Eastern parts of the continent. It should generate around $2.9 billion yearly. Regarding shareholding, SABMiller gets 57% of the new company while Coca-Cola Sabco holds 31.7%. Left is Coca-Cola which will initially detain 11.3% of the firm’s capital with possibility for change. Truly, a term under the agreement gives the latter the right to acquire SABMiller’s shares if ownership was to change.

While the brewer awaits approval for its merger with AB InBev, Coca-Cola is likely to rapidly find itself at the head of the new soft drinks African giant.

Aaron Akinocho