Heineken buys Femsa, eyes L.American beer market
- Source: Global Times
- [00:55 January 12 2010]
- Comments
Dutch brewer Heineken Monday said it would buy Mexican beer maker Femsa in a deal that values the company behind the Dos Equis and Sol brands at 5.3 billion euros ($7.7 billion).
"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," Heineken chief executive Jean- Francois van Boxmeer said.
"The transaction is expected to ... deliver positive economic profit after six years," said a statement by Heineken, adding that the deal was expected to be completed in the second quarter.
Heineken shares climbed 5 percent in Amsterdam after the announcement.
The Dutch brewer said the deal to buy the beer operations of Fomento Economico Mexi-cano (Femsa) would also reinforce its position as the world's second-largest brewer by revenue ($24.3 billion).
Heineken said the implied equity value of Femsa Cerveza was 3.8 billion euros ($5.5 billion). The total enterprise value, with net debt and pension obligations, was 5.3 billion euros.
Femsa will have the right to appoint two non-executive representatives to Heineken's supervisory board.
The Mexican brewer said the deal would allow "Femsa's beer operations to become an integral part of Heineken's leading global platform" and "increases Femsa's operational and financial flexibility."
AFP
