MEXICO/ECUADOR: Embotelladoras Arca teams with Ecuador Bottling Company in LatAm
Embotelladoras Arca has lined up a joint-venture in South America with Ecuador Bottling Company (EBC).
In a filing with the Mexican Borsa earlier this week, the Coca-Cola bottler said that it will acquire a 75% voting stake in EBC for US$320m. Arca will also give EBC's controlling shareholders 25% of its subsidiary in Argentina, estimated by analysts to be worth around $25m. One final part of the transaction will see Arca take ownership of some non-voting shares in ECB, which will qualify Arca to receive a fixed annual dividend of $7m.
Further details are expected to be released later today (10 September).
EBC is the sole Coca-Cola bottler in Ecuador. Arca has subsequently consolidated its position as the brand's second largest bottler in Latin America, behind its compatriot, Coca-Cola FEMSA.
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