Coca-Cola FEMSA S.A.B. de C.V.
) has acquired its Brazilian peer Companhia Fluminense de
Refrigerantes for $448 million in an all cash transaction. The
deal, signed in Jun 2013, was approved by Coca-Cola FEMSA's
board, the Brazilian antitrust authority and FEMSA's franchise
The Coca-Cola Company
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
The deal extends Coca-Cola FEMSA's reach in Latin America, a
budding business hub. The takeover will strengthen the company's
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
Coca-Cola FEMSA is on an acquisition spree and has been
acquiring Coke bottlers in Mexico for the last two years. In
January this year, the cola giant 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 has acquired a
51% interest in Coca-Cola Bottlers Philippines, Inc. during that
Beverage giants are fast expanding into emerging markets. Coca
) traded its bottling operations in China for a position in
Tingyi Holding's beverage business. Tingyi's beverage subsidiary
(Tingyi-Asahi Beverages Holding) will become Pepsi's franchise
bottler in China.
Currently, Coca-Cola FEMSA carries a Zacks Rank #3 (Hold).
FOMENTO ECO-ADR (FMX): Free Stock Analysis
COCA COLA CO (KO): Free Stock Analysis Report
COCA-COLA FEMSA (KOF): Free Stock Analysis
PEPSICO INC (PEP): Free Stock Analysis Report
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