Coca Cola FEMSA and the Coca-Cola Co. have launched a tender public offering to buy 100% of the shares of the juice company Jugos del Valle.

The move is being made through the Mexican-owned company Administración, which is owned directly or indirectly in equal proportion by FEMSA and Coke. It is being made after a ruling by the National Banking and Securities Commission which authorised Administración to launch a Tender Public Offering

Administración launched offering to buy the shares for an approximate amount of US$370 million in cash, equivalent to a price of US$6.34 per share and assuming liabilities for approximately US$86m.

"This transaction increases the presence of The Coca-Cola Company and Coca-Cola FEMSA, in the fast growing non-carbonated beverage segment in Latin America," a statement said.

Once the offering to buy the shares is completed, and as soon as possible, both companies will invite the rest of the bottlers of The Coca-Cola Company branded products in Mexico and Brazil, respectively, to participate in the joint-venture, FEMSA said.

Jugos del Valle is the second largest producer of juice, nectars and juice based products in Mexico, the largest in Brazil and with presence in other American markets.

This transaction has been approved by the Mexican regulatory authorities.