Coca-Cola Amatil Limited (ASX: CCL) today announced that it has decided not to buy Foster’s Australian spirit and spirit RTD (ready-to-drink) business, and is instead progressing the development of the company’s own Australian spirits and RTD brand portfolio.

As part of the agreement to sell its interest in Pacific Beverages to SABMiller plc (LON: SAB), CCA has the right to acquire each of three Foster’s businesses including the Foster’s Australian spirit and spirit RTD business, the Australian non-alcoholic beverages business and the Fiji Breweries and distillery in Fiji and Samoa.

CCA is currently conducting due diligence on the other two businesses (Australian non-alcoholic beverages and Fiji Breweries and distillery in Fiji and Samoa), and any decision to purchase either of these businesses is expected to be made shortly.

Savings
CCA indicated that it was prepared to pay up to $200m to purchase all three businesses. By deciding not to purchase the spirits and spirit RTD business from Foster’s, CCA will receive $34m from SABMiller, as well as saving itself more than $100m.

Should CCA decide to proceed with the purchase of the other two businesses, it expects to outlay between $50-$70m.

Coca-Cola Amatil Articles
CCA has been mentioned several times by The Motley Fool, as a stock to own for the long term, given its flagship brand, and is now arguably Australia’s premier drinks company across soft drinks, juices and alcoholic beverages. Have a look at the links below.

4 Blue chip stocks for 2012

Australia’s world beating companies

In troubled times, dividends are king

Attention: If you are looking for ASX investing ideas, look no further than “The Motley Fool’s Top Stock for 2012.” In this free report, Investment Analyst Dean Morel names his top pick for 2012…and beyond. Click here now to find out the name of this small but growing telecommunications company. But hurry – the report is free for only a limited period of time.

More reading

Motley Fool contributor Mike King doesn’t own shares in any of the companies mentioned. The Motley Fool’s purpose is to educate, amuse and enrich investors. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Click here to be enlightened by The Motley Fool’s disclosure policy.

OUR #1 DIVIDEND PICK FOR 2016...

Forget BHP and Woolworths. This "dirt cheap" company is growing like gangbusters, and trading on a 5.6% dividend yield, FULLY FRANKED (8% gross). With interest rates set to stay at these low levels for years to come, for hungry investors, including SMSFs, this ASX company could be the "holy grail" of dividend plays for 2016.

Enter your email below to discover the name, code and a full investment analysis in our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2016.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.