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Heineken To Buy Mexico’s FEMSA in $7.9 Billion Deal

Heineken To Buy Mexico’s FEMSA in $7.9 Billion Deal

AMSTERDAM/BRUSSELS - Heineken NV will buy the beer business of Mexico's FEMSA in a $5.7 billion deal that boosts the Dutch brewer's emerging-markets presence and cements an alliance with one of Latin America's biggest drinks firms. Heineken, the world's third-largest brewer, said on Monday the all-stock purchase would make FEMSA its second largest shareholder -- with a 20 percent stake -- and give it access to the boardroom. The deal is competitively priced and broadens Heineken's access to higher-growth markets, analysts said. The company's shares rose 3 percent, sending shares sharply higher. FEMSA shares slid 12.5 percent on disappointment over the deal price after brewer SABMiller pulled out of the auction. SAB was not interested in FEMSA's Brazil operations, sources told Reuters. FEMSA, which started as a brewer and ice maker in 1890, is the world's second-biggest Coca-Cola bottler, and sells the soft drink in nine Latin American countries. Its chief, Jose Antonio Fernandez, is a Formula 1 enthusiast who doubles as a racing commentator on the ESPN cable television network. [...more]

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