Coca Cola Amatil has received the green light from FIRB.Credit:
Coke Australia told investors on Monday morning the Foreign Investment Review Board (FIRB) had no objection to the deal,an outcome that was widely expected by the company and investors.
However,the local bottler warned the FIRB clearance was only one part of the lengthy process of finalising the deal,which is yet to be approved by shareholders with a vote expected to be held in March.
A tick is still required from the New Zealand Overseas Investment Office,and the deal will also need to be deemed in the best interest of shareholders by an independent expert review.
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Analysts are keenly awaiting the outcome of this independent review,as many market-watchers are currently agitating for a higher offer price for the local company,pointing to its better-than-expected performance during COVID.
Last week,Coke Australia revealed its earnings for the 2020 calendar year would ring in at $550.7 million,nearly $50 million higher than what analysts had expected thanks to a lift in volumes through the December quarter.
Belinda Moore,analyst at Morgans,toldThe Age andThe Sydney Morning Herald she was hoping for a $14 per share offer from CCEP given the improved result.