Coca-Cola Amatil parent scuttles Lion Nathan merger
Coca-Cola Amatil has called off its $A7 billion takeover talks with Lion Nathan, saying its US-based parent has rejected the proposal.
Coca-Cola Company, which owns a 30% stake in Australia-based Coca-Cola Amatil (CCA), has written to Lion Nathan's major shareholder, Japan’s Kirin Holdings, calling off discussions, CCA says in a statement.
"Given that the proposal required the support of [Coca-Cola] as a condition of the proposal being able to proceed, the CCA board takes the existence of this letter as bringing the proposal to an end."
Lion Nathan had offered CCA cash and shares under a “mix and match” facility.
It comprised $A6.15 cash per CCA share and 0.469 Lion Nathan shares for each CCA share, assuming CCA shareholders accepted a mix of 60% cash and 40% scrip. The deal represented an offer of $A10.42 per CCA share, based on stock values at November 7, valuing the target at around $A7.67 billion.
The deal required the support from the US-based parent and the sale of its stake in CCA to Lion Nathan.
When CCA last year sought Coca-Cola Company's view on the offer it told Kirin the proposal was not attractive.
Coca-Cola Company later sent to Kirin a list of conditions that would need to be satisfied before it would reconsider the offer.