Coca-Cola FEMSA S.A.B. de C.V
) completed its purchase of 51% stake in
) franchise bottler in Philippines, Coca-Cola Bottlers
Philippines, Inc., for $688.5 million in cash. The transaction
was announced in December last year.
Per the agreement, Mexico's Coca-Cola FEMSA reserves the
option to acquire the remaining 49% of Coke's Philippine bottling
plant any time during the upcoming 7 years. The largest Coke
bottler also has an option to sell back its 51% share to The
Coca-Cola Company in the 6
The deal will expand Coca-Cola FEMSA's presence beyond Latin
America to the fast emerging market of Philippines. Coca-Cola's
products are very popular in this country, which boasts one of
the highest per capita consumption rates of Coca-Cola products.
CCBPI is expected to generate revenues of approximately $1.1
billion in 2012. The bottler, which has 23 production plants, is
expected to sell approximately 535 million unit cases of
beverages in the year.
Last week, 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 acquisition of a majority
stake in the Philippines bottler marked the 5th transaction that
Coca-Cola FEMSA conducted with a Coke bottler in the last 18
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 Ltd. In Oct 2010, the company acquired
Coca-Cola Enterprises' North American bottling and distribution
operations. In Dec 2011, the company acquired Coca-Cola Great
Plains Bottling Company and in Feb 2012, it acquired bottling
operations in Vietnam and Cambodia from Coca-Cola Sabco Limited
(Sabco). In Jun 2012, Coca-Cola acquired bottling operations in
Coca Cola Femsa carries a Zacks Rank #2 (Buy) while the
Coca-Cola Company carries a Zacks Rank #4 (Sell).
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