European Coca-Cola bottling plants Merge

Coca-Cola Enterprises (CCE) will combine with the beverage maker's German subsidiary (CCEAG) and Coca-Cola Iberian Partners (CCIP).

 

The company will be called Coca-Cola European Partners (CCEP) and will generate about $12.6bn per year.

It hopes to cut costs of up to $375m (£242m) within three years. 

The deal is structured as a so-called tax inversion, with CCE moving its corporate headquarters from Atlanta to London, so it can cut exposure to higher US taxes.

Muhtar Kent, Coke's Chief Executive said, "It's a major milestone and major transaction that will benefit all parties involved."

CEE shareholders will own 48% of the new company, CCIP will have 34%, while Coca-Cola Co. will hold 18%.

The world's largest soft drinks maker has reduced its bottle sizes as customers cut back on the amount of fizzy drinks they consume.