Financial Accuracy

Coca-Cola Co. will follow in Pepsi Co.’s footsteps by buying Coca-Cola Enterprises Inc. Coca-Cola Enterprises Inc. is Coca-Cola Co.’s largest current bottler.

They are hoping that bringing their bottler indoors will slash costs. Coca-Cola Co. will also receive more flexibility in the bottling process.

This purchase will transfer the $8.88 billion debt of Coca-Cola Enterprises to Coca-Cola Co. Coca-Cola Co. also promises to give up it’s 34% share in Coke Enterprises which is said to be worth $3.21 billion.

Stockholders of Coke Enterprises will receive a $10 per share dividend. Coca-Cola Co. felt driven by Pepsi Co.’s strategic move of purchasing Pepsi Bottling Group Inc. to make this purchase.