British-based bottling giant Coca Cola European Partners (CCEP) has made a bid to buy its Australian counterpart for around A$9.23bn (£4.96bn).
If approved, it would represent the biggest deal in Australia this year.
Reports emerged of a potential bid over the weekend before CCEP revealed it had made a non-binding offer to acquire 69.2pc of Coca Cola Amatil, which is headquartered in New South Wales.
Amatil operates in six countries across the Asia Pacific region, namely Australia, New Zealand, Indonesia, Papua New Guinea, Fiji, and Samoa.
In a statement released late on Sunday night, CCEP said the deal would help it create a “broader and more balanced footprint”.
CCEP, which is the world’s largest independent bottler of Coca Cola, is offering around A$12.75 per share – a premium of 18.6pc on the last closing price.
Amatil’s independent shareholders has backed the takeover, Reuters reported. US-based Coca-Cola Co owns a 30.8pc stake in Amatil and a 19.4pc state in CCEP.
Both companies bottle and sell Coca Cola products in their respective markets but have suffered from lockdowns that has hindered volumes.
“This has particularly been the case in Western Australia and New Zealand … providing insight on the expected shape of the recovery that can be expected,” Amatil Managing Director Alison Watkins said in a statement.
Shares in Amatil have slid nearly a fifth on their 2020 high so far this year. The company has 32 production facilities and operates in Australia, New Zealand, Indonesia, Fiji, Papua New Guinea and Samoa.
Any agreement is subject to “confirmatory due diligence” from CCEP, the company said.