South Africa’s Competition Appeal Court Rules Against Coca-Cola

Coca-Cola Beverages Africa broke conditions related to two mergers in South Africa, the country’s competition court has ruled.

South Africa’s Competition Appeal Court said Coca-Cola Beverages Africa (CCBA) breached conditions linked to transactions in 2016 and 2017.

Six years ago, competition officials in South Africa approved a deal between SABMiller, The Coca-Cola Co. and Gutsche Family Investment that created Africa’s largest bottler.

Both deals included deals to protect workers. In a judgment handed down on 17 June, the Competition Appeal Court ruled CCBA violated those conditions with its local subsidiary retrenched 368 employees in 2019.

The court’s ruling went against a decision by South Africa’s Competition Tribunal last September. The Tribunal set aside a notice from The Competition Commission South Africa, which had pressed the case CCBA had breached the conditions.

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