MEXICO: Coca-Cola FEMSA to acquire Grupo CIMSA in merger
Coca-Cola FEMSA, Grupo CIMSA to control half of Coca-Cola volumes in Mexico
Coca-Cola FEMSA has said that it will acquire fellow Mexico-based Coca-Cola bottler Grupo CIMSA in a merger deal worth MXN11bn (US$834m).
The deal will give Coca-Cola FEMSA control of 50% of Coca-Cola Co volumes in Mexico. In addition, Coca-Cola FEMSA will become the owner of a 13.2% stake in Promotora Industrial Azucarera, (PIASA), a participant in the Mexican sugar industry.
Grupo CIMSA, family-owned Coca-Cola bottler, operates mainly in the states of Morelos and Mexico, as well as in parts of the states of Guerrero and Michoacan. The firm's bottling operation is expected to sell around 159m unit cases of beverages in the country in 2011.
Coca-Cola FEMSA's CEO, Carlos Salazar Lomelin, said the merger will improve the group's geographic spread. He said: “This merger with one of the largest franchises in the Mexican Coca-Cola bottling system confirms that our company represents an attractive, transparent and diversified investment vehicle for families that have been in the beverage industry for a long time."
Grupo CIMSA’s shareholders have already backed the deal, he added. Still, the merger agreement is subject to the completion of confirmatory legal, financial, and operating due diligence and to customary regulatory and corporate approvals.
Coca-Cola FEMSA will call for an extraordinary shareholders meeting for the approval of the merger.
To see the company's announcement, click here.
The Coca-Cola Co has spent the last 20 years diversifying its portfolio. Where once the rest of the stable cowered in Coke's shadow, more of the company's brands are now grabbing the spotlight and del...
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