Heineken halfway in FEMSA Cerveza share handover

Heineken halfway in FEMSA Cerveza share handover

Heineken has reached the halfway stage of its scheme to hand 29m shares to Fomento Económico Mexicano (FEMSA), in exchange for ownership of its FEMSA Cerveza brewer.

Heineken has delivered 13.1m of its own shares to FEMSA, with a further 1.8m set to be handed over by 1 July, the brewer said today (20 June). By the end of the process FEMSA will hold a 20% stake in Heineken, in exchange for allowing its former brewing arm to be absorbed into the Heineken group.

The Netherlands-based brewer said that it has begun its next phase of share buybacks as part of the deal. It aims to buy EUR300m (US$427m) of shares by the end of 5 September.

Last year, Heineken said that FEMSA Cerveza, which is Mexico's second largest brewer behind Grupo Modelo, would boost its profits within two years.