Goldman Sachs Provides $600 Million To Jubilant Bhartia For Coca-Cola Bottling Stake Acquisition

Goldman Sachs Asset Management has extended $600 million in funding to Jubilant Bhartia Group to support its acquisition of a 40 percent stake in Hindustan Coca-Cola Holdings Pvt Ltd, the bottling arm of Coca-Cola in India. The total acquisition cost is estimated at $1.5 billion, with the remaining amount being financed through a combination of equity and debt.  

Key Highlights  

- Goldman Sachs' hybrid fund financed the equity portion by subscribing to convertible preference shares issued by Jubilant Bhartia Group.  
- The acquisition was announced in December 2024 and received approval from the Competition Commission of India on May 1, 2025.  
- Jubilant Bhartia will fund the remaining $900 million through $600 million in equity and $300 million in debt.  
- The group’s subsidiaries, Jubilant BevCo and Jubilant Beverages, issued rupee-denominated bonds totaling $658 million-equivalent to support the transaction.  

Funding Structure And Convertible Preference Shares  

- Goldman Sachs' hybrid fund operates between traditional debt and equity, offering longer tenure financing.  
- Convertible preference shares allow companies to raise capital without taking on excessive debt while limiting dilution from selling additional common stock.  
- This funding strategy enables Jubilant Bhartia to maintain financial flexibility while securing a significant stake in Coca-Cola’s Indian bottling operations.  

Jubilant Bhartia’s Business Portfolio  

- The group operates across multiple sectors, including pharmaceuticals, food services, and energy solutions.  
- It holds franchise rights for global brands such as Domino’s, Popeyes, and Dunkin’.  
- In the pharmaceutical sector, Jubilant Bhartia engages in contract research, novel drug development, and life science ingredients.  

Industry Perspective  

Goldman Sachs' investment reflects growing global interest in mergers and acquisitions within India’s consumer and beverage sector. The deal positions Jubilant Bhartia as a key player in Coca-Cola’s Indian bottling operations, strengthening its foothold in the beverage industry.  

With this strategic acquisition, Jubilant Bhartia is set to expand its presence in India’s beverage market while leveraging Coca-Cola’s established distribution network.  

Sources: Businessworld, MSN, LiveMint, Economic Times, Bloomberg