Milan, 28 July, 2008 - An Italian unit of the Greek bottler of Coca-Cola drinks, Coca-Cola Hellenic, is in talks to buy Italy's second-biggest bottler of Coca-Cola, Fanta and Sprite drinks, sources in both companies said on Monday.
The Italian Federation of Wholesale Beverage Distributors, Italgrob, said in a statement on Monday that Coca-Cola HBC, controlled by Coca-Cola Hellenic, is set to buy 100 percent of Socib SpA whose bottled Coke is sold in the south of Italy.
"We confirm that there are talks under way," the source at Coca-Cola Hellenic said declining to give more details.
A source at Socib also confirmed the talks were under way but "no decision has been made."
Family-run Socib, the second-biggest Coke bottler in Italy with four plants and its own distribution network, had revenues of 260 million euros ($409.4 million) in 2003, according to its Web site.
The deal, if it goes ahead, would weaken competition in the Italian beverage sector where Coca-Cola HBC has its own distribution network in the north of the country, said Italgrob Chairman Giuseppe Cuzziol.
"We are talking about a new step in the policy of monopolization of the Italian market by the (Coca-Cola) company which acts either on the products' front or in distribution," Cuzziol said in the statement.