This undated photo shows the building of Swire Pacific Ltd (second right) in Central, Hong Kong. (EDMOND TANG / CHINA DAILY)

Hong Kong-based conglomerate Swire Pacific Ltd said on Monday it would buy the packaging and distribution operations of Coca-Cola in Vietnam and Cambodia, marking its expansion into the southeast Asian beverages market.

Swire Pacific will pay $1.02 billion in cash for Coca-Cola Indochina, which packages and distributes the beverage in the two southeast Asian countries.

The firm is buying Coca-Cola Indochina through its Swire Beverages and Swire Coca-Cola units, from Coca-Cola (Japan), which is ultimately owned by Coca-Cola Co.

READ MORE: Swire Coca-Cola to expand production in China market

Swire Coca-Cola bottles the beverage for markets in Hong Kong, and parts of the mainland and United States.