Coca-Cola sees $1B impairment charge in Q4 related to Beverages Africa deal

As previously reported, Coca-Cola (KO) and Gutsche Family Investments have agreed to sell a 75% controlling interest in Coca-Cola Beverages Africa to Coca-Cola HBC AG. In a regulatory filing, Coca-Cola stated: “Closing is subject to various regulatory approvals and is expected by the end of 2026, upon which we will deconsolidate these bottling operations. We have also agreed to a separate option arrangement for CCHBC to acquire the company’s remaining 25% ownership interest within a six-year period from closing. As these operations met the criteria to be classified as held for sale during the fourth quarter, we will be required to record the related assets and liabilities at the lower of carrying value or fair value less any costs to sell based on the estimated proceeds. Due to the significant negative net foreign currency translation adjustments that will be reclassified to income upon sale, we will be required to reduce the carrying amount of the assets held for sale, which will result in an impairment charge of approximately $1B during the fourth quarter of 2025.”