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Compania Cervecerias Unidas (CCU), the Chilean drinks company, has signed a Share Purchase Agreement to acquire Nestle Chile S.A.’s 49.9% equity interest in their joint venture, Aguas CCU-Nestle Chile. As CCU already held a 50.1% stake in the business through its subsidiary Embotelladoras Chilenas Unidas, the transaction gives CCU 100% ownership of the firm.
Aguas CCU-Nestle Chile operates with leading brands in the country’s growing water industry, bottling the Cachantun and Porvenir brands and managing a production and sales licence for Nestle Pura Vida.
The transaction valued the joint venture at a total enterprise value of approximately 322,377 million CLP ($361 million) on a cash-free and debt-free basis, resulting in a closing purchase price of roughly 164,597 million CLP ($180 million) for Nestle’s stake. According to CCU, the definitive financial effects of the acquisition on its assets, liabilities, and results cannot yet be determined.
A statement from Nestle noted: “The transaction reflects Nestle’s continued focus on portfolio discipline and simplification, while ensuring continuity under CCU’s ownership”.
Following completion, CCU will maintain its commercial relationship with Nestle, continuing the distribution of ready-to-drink products in the Chilean water and coffee-based beverage markets.
