Clifford Chance and its Saudi partner Al-Jadaan have advised Saudi Arabia-based drink manufacturer Aujan on the sale of a stake worth $980 million to Coca-Cola, as the global beverage giant looks to challenge Pepsi’s dominance in the Middle East.
The transaction, which is expected to close in the first half of 2012, is the largest-ever investment by a multinational company in the Middle East's consumer goods sector, according to the two parties. Under the terms of the agreement, Coke will acquire 50 percent of the Aujan entity that holds the rights to Aujan-owned brands, and 49 percent of the company’s bottling and distribution business.
The Clifford Chance team was led by Nigel Wellings, the firm’s Dubai-based corporate partner, who was associated with Daud Khan and Lyndsey McAuley. The Al-Jadaan team was led by partner Khalid Al-Abdulkareem and Omar Rashid, head and joint-head respectively of the corporate and equity capital markets practice, together with support from associates Fahad Abuhimed, Osama Audi and Majid Al-Sheikh.
“We are delighted to have been part of such a key transaction for Aujan, and the region as a whole. Clifford Chance has a strong focus on the consumer goods and retail sector, and so we are pleased to have the opportunity to showcase our expertise in the Middle East," said Wellings in a statement.
Aujan, with an expected annual revenue exceeding $850 million fpr thi, is one of Saudi Arabia’s biggest companies. It holds the license to Vimto, which is one of the most popular drinks in the Middle East. Aujan brands include Rani, a line of juices, and Barbican, a flavored malt beverage.
The Middle East currently contributes a small fraction of Coke's overall sales and Pepsi is dominant in the region, Reuters said, adding that Coke, in October, announced plans to invest $5 billion in the Middle East and North Africa over the next 10 years. ALB
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