The shares of Coca-Cola (NYSE:KO) European Partners increased about 24.71% to $38.81 in mid-morning trading on Tuesday regarding to its recent merger between three Coca-Cola bottlers. The newly formed Coca-Cola European Partners is trading under the ticker for Coca-Cola Enterprises, the Atlanta-based beverage company that merged with Coca-Cola Iberian Partners and Coca-Cola Erfrischungsgetränke GmbH, which was finalized Saturday, according to the company.
The Coca-Cola European Partners merged with Coca-Cola Enterprises by receiving a one-time payment of $14.50 per share, which the London-based Coca-Cola European Partners is now the largest independent bottler for Coca-Cola based on revenue with pro forma 2015 net sales of about 11 billion euros.
Until the merger completed with Coca-Cola European Partners, the shareholders of the former domestic bottler now own 48% of the new company. Coca-Cola Iberian Partners and Coca-Cola, the previous owner of Coca-Cola Erfrischungsgetränke, own 34% and 18%, respectively, of the combined company.
Also, Coca-Cola Enterprises has a “buy” rating rating and a letter grade of B at TheStreet Ratings because of the company’s expanding profit margins, solid stock price performance and notable return on equity.
“This is a very exciting time for Coca-Cola European Partners, as Europe continues to represent an outstanding platform for long-term, profitable growth. Coca-Cola European Partners has the portfolio, the customer relationships, and the innovation, flexibility, scale, and speed needed to capture this opportunity,” CEO John Brock said in a statement.