LG Household & Health Care's beverage subsidiary Haitai htb attracted multiple bidders in preliminary bidding on July 24, with 5-6 or more parties submitting letters of intent according to investment banking industry sources on July 28. The bidding success has renewed market speculation about whether LG H&H might subsequently sell Coca-Cola Beverage, its larger beverage subsidiary, as part of ongoing business restructuring efforts to strengthen its core cosmetics operations. Industry experts note that while Coca-Cola Beverage represents a valuable asset, any sale faces significant structural barriers due to partnership agreements with Coca-Cola headquarters and the complexity of transferring bottling rights alongside equity ownership.
Haitai htb Preliminary Bidding Attracts Multiple Parties
On July 24, LG Household & Health Care's subsidiary Haitai htb held preliminary bidding that drew participation from multiple potential acquirers. Investment banking industry sources reported that 5-6 or more parties submitted letters of intent. Samjung KPMG serves as the lead underwriter for the transaction.
Market Speculation Links Sale to Cosmetics Business Focus
Following the Haitai htb bidding success, market observers have revived speculation about a potential Coca-Cola Beverage sale. The theory suggests LG H&H might first divest loss-making Haitai htb, then consider selling the larger and more core Coca-Cola Beverage operations. This speculation stems from LG H&H's stated focus on strengthening its primary cosmetics business, which faces challenges from indie brand competition and key market difficulties. The Haitai htb sale is interpreted as part of efforts to secure resources for cosmetics competitiveness enhancement. LG H&H has consistently described Coca-Cola Beverage sale rumors as "groundless."
Coca-Cola Partnership Structure Creates Sale Barriers
Investment banking industry experts cite the Coca-Cola partnership structure as a major barrier to any near-term sale. LG H&H owns 90% of Coca-Cola Beverage, while a US Coca-Cola affiliate holds the remaining 10%. Coca-Cola Beverage operates as a bottling producer that receives concentrate from Coca-Cola headquarters, then manufactures and distributes products domestically. Any acquirer must inherit not only company management rights but also partner status for long-term production and sales of Coca-Cola brands in Korea. Management rights transfer requires consultation with Coca-Cola headquarters. The transaction effectively involves both LG H&H selecting a buyer and Coca-Cola headquarters choosing a new domestic business partner. This differs from Haitai htb, where external brand contracts like Minute Maid represent only a portion of operations—Haitai htb can continue business centered on proprietary brands like Bong Bong and Gala Mandun Bae even if some external brand contracts terminate.
Limited Buyer Pool Due to Operational Scale and Partnership Requirements
Investment banking industry sources describe the potential acquirer pool as limited. Coca-Cola Beverage operates nationwide production, logistics, and sales organizations plus distribution networks with major retailers and food service companies. Small and mid-sized strategic investors lacking capital strength or beverage/consumer goods experience would find operations challenging. Private equity fund acquisitions also face difficulties—funds must recover investments after a set period, meaning Coca-Cola Beverage management rights could return to market within years. Coca-Cola headquarters may view repeated ownership changes as burdensome after selecting a long-term domestic operations partner. Fund managers would face investment recovery constraints if future resale requires Coca-Cola headquarters consultation.
Coca-Cola Beverage Financial Performance
Coca-Cola Beverage recorded revenue of 1.5965 trillion won and operating profit of 151 billion won in 2025. These figures represent decreases from 2024 revenue of 1.6357 trillion won and operating profit of 164.1 billion won, but the company maintains an operating profit margin approaching 10%. The high brand recognition and stable cash generation capability remain factors that could attract potential acquirer interest.
FAQ
What happened with LG H&H's Haitai htb bidding on July 24?
Multiple bidders participated in Haitai htb preliminary bidding on July 24, with 5-6 or more parties submitting letters of intent according to investment banking industry sources. Samjung KPMG serves as the lead underwriter for the transaction.
Why do experts say a Coca-Cola Beverage sale faces structural barriers?
Experts cite the bottling partnership with Coca-Cola headquarters as a major barrier. Any acquirer must inherit both management rights and partner status for producing and selling Coca-Cola brands in Korea, requiring consultation with Coca-Cola headquarters during ownership transfer. LG H&H owns 90% of Coca-Cola Beverage while a US Coca-Cola affiliate holds 10%.
What were Coca-Cola Beverage's financial results in 2025?
Coca-Cola Beverage recorded revenue of 1.5965 trillion won and operating profit of 151 billion won in 2025, maintaining an operating profit margin approaching 10% despite decreases from 2024 figures of 1.6357 trillion won in revenue and 164.1 billion won in operating profit.
