The Castel Group has announced that Southern Bottlers Limited (SOBO) has agreed to sell its soft drinks business to Coca-Cola Beverages Limited (CCBL), a subsidiary of Coca-Cola Beverages Africa (CCBA)

In a statement Thursday the transaction remains subject to obtaining the necessary regulatory approvals, including approval by the COMESA Competition Commission.

The statement further says that the divestment of the soft drinks business is in line with the Board’s strategy to focus on investments in its alcoholic beverages business.

“This is a great opportunity for the country as the CCBA group has a strong track record on the continent and is committed to sustainable growth where it operates,” reads the statement.

The company has since promised to communicate further regarding the transaction as soon as the necessary regulatory approvals have been received by the parties.