Coca-Cola FEMSA S.A.B. de C.V.
) has agreed to purchase 100% of Brazilian peer Companhia
Fluminense de Refrigerantes for $448 million in cash. The deal
has been approved by Coca-Cola FEMSA's board but still awaits
approval from the Brazilian antitrust authority and FEMSA's
The Coca-Cola Company
Companhia Fluminense produces and distributes trademark
beverages of The Coca-Cola Company including Coca-Cola, Fanta,
Kuat, Del Valle, and others in São Paulo, Minas Gerais and Rio de
Janeiro in Brazil.
The deal will extend Coca-Cola FEMSA's reach in Latin America,
which is successfully emerging as a business hub. Beyond
expansion, it will strengthen the supply chain in the Brazilian
markets. Notably, among all other Latin American countries,
Brazil is expected to lead the growth trajectory. Brazil is set
to witness a surge in demand driven by decent economic growth and
the resurgence of the middle class. Strong hold in the Brazilian
markets will also help Coca-Cola FEMSA to cash in on the FIFA
World Cup, which is scheduled for 2014 along with the Olympics in
Coca-Cola FEMSA is on an acquisition spree and has been
acquiring Coke bottlers in Mexico in the last two years. Most
recently in Jan 2013, Coca-Cola FEMSA entered into a definitive
agreement to acquire another Mexico-based Coca-Cola bottler Grupo
Yoli, S.A. de C.V. for $700 million. The company is also
expanding its operations beyond Latin America and acquired a 51%
interest in Coca-Cola Bottlers Philippines, Inc. in Jan 2013.
Coca-Cola FEMSA is co-owned by the Coca Cola Company and
Fomento Economico Mexicano S.A.
) - also known as FEMSA. It produces and distributes Coca-Cola,
Fanta, Sprite, Del Valle, and other trademark beverages of The
Coca-Cola Company, bottled water, juices, teas, isotonics, beer,
and other beverages in Mexico, Guatemala, Nicaragua, Costa Rica,
Panama, Colombia, Venezuela, Brazil, Argentina and Philippines.
Currently, Coca-Cola FEMSA carries a Zacks Rank #4 (Sell).
The Coca-Cola Company has ownership interests in many other
bottling operations, including
Coca-Cola Enterprises Inc.
), Coca-Cola Hellenic Bottling Company S.A. and Coca-Cola Amatil
COCA-COLA ENTRP (CCE): Free Stock Analysis
FOMENTO ECO-ADR (FMX): Free Stock Analysis
COCA COLA CO (KO): Free Stock Analysis Report
COCA-COLA FEMSA (KOF): Free Stock Analysis
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