Coca-Cola already owns the remaining 35 per cent of the venture.

The companies have been in negotiations for the sale of the controlling stake in Coca-Cola Bottlers Philippines for several months but despite rumours of an agreed sale, had not yet disclosed a price for the deal.

In a statement, San Miguel said it had decided to exit CCBPI to "provide the company longer term commercial flexibility".

The business has seen falling sales in recent years - volumes were down by 8 per cent during 2005 and in the first nine months of 2006, sales fell a further 4 per cent on the prior year.

The firms have agreed that San Miguel will provide labour and other services to Coca-Cola for a maximum of 18 months to allow the US beverage giant to take over control of the bottler.

San Miguel also said it will not produce, for itself or for certain competitors of Coca-Cola, non-alcoholic beverages anywhere in the world for a period of three years from the closing of the deal.

In the Philippines, San Miguel cannot compete with Coca-Cola for five years in the manufacture and sale of carbonated soft drinks, sports drinks, energy drinks and flavoured water.