Tuesday, September 3, 2013

The Amerícas: México's Coca-Cola Bottler, FEMSA, Buys Brazil's Spaipa for US$1.85 Billion

According to The Latin American Tribune, México’s Coca-Cola FEMSA said it has reached an agreement to acquire 100% of Brazil’s Spaipa in a deal worth $1.85 billion.

The acquisition, which has been given the green light by FEMSA's board of directors, is subject to regulatory approval in Brazil, said Coca-Cola FEMSA, considered the world’s largest independent bottler of Coca-Cola products in terms of sales volume. 

COMMENT: FEMSA will also seek the approval of The Coca-Cola Company before the acquisition is finalized.

Spaipa, the second-largest privately held Coca-Cola system bottler in Brazil, selling 233.3 million cases of beverages, including beer, in the 12 months ended June 30, 2013.
 

Spaipa’s territory creates a perfect geographic link between the operations of Coca-Cola FEMSA in Mato Grosso do Sul state and the state of São Paulo. 
 
Coca-Cola FEMSA is a unit of Fomento Economico Mexicano, a conglomerate that also owns FEMSA Comercio, the operator of more than 10,600 OXXO convenience stores, FEMSA Empaques and FEMSA Logistica.

FEMSA also owns 20% of the Dutch brewing giant, Heineken Group.