Heineken, FEMSA deal on-track

Heineken, FEMSA deal on-track

Heineken has received the green light from Mexico's competition regulator to acquire FEMSA Cerveza, the country's second largest brewer.

Mexican authorities cleared the deal without imposing any conditions, FEMSA Cerveza parent firm Fomento Economico Mexicano (FEMSA) said yesterday (29 March).

It said that both companies still expect to complete the deal in the second quarter of 2010.

Heineken announced in January that it would acquire FEMSA Cerveza in an all-share deal, valued at around EUR3.8bn (US$5.5bn) excluding debt.

FEMSA will take a 20% stake in Heineken in return for yielding ownership of all of FEMSA's Mexican beer business, its US export business and 83% of the Brazilian beer business that Heineken does not already own.

"Through this deal we become a much stronger, more competitive player in Latin America, one of the world's most profitable and fastest growing beer markets," said Heineken's CEO and chairman, Jean-François van Boxmeer.

For more analysis on the deal, click here.