Chilean soft drinks producer Coca-Cola Embonor is considering selling its Peruvian subsidiary Embotelladora Latinoamericana S.A. (ELSA) to Peru's Inca Kola, according to new reports in the Chilean press.

Senior executives from the J.R. Lindley Corporation, which owns 50% of Inca Kola, have reportedly made regular visits to Embonor's offices to discuss the deal.

J.R. Lindley's general manager, Manuel Salazar, has not denied an interest in purchasing ELSA, but emphasised that his company has not so far "made a purchase offer or taken part in any due diligence process with Embonor."

Analysts suggest that J. R. Lindley would subsequently seek to merge the two soft-drinks producers, which between them dominate the Peruvian market.

ELSA is Peru's largest soft-drinks producer and has an executive contract with The Coca-Cola Company to bottle and distribute the Coca-Cola, Coca-Cola Light, Fanta, Sprite, Schweppes and Tai brands.