Heineken expands into Latin, South America with FEMSA bid

January 12, 2010
/ Print / Reprints /
ShareMore
/ Text Size+

Heineken N.V., Amsterdam, announced its acquisition offer for the beer operations of Fomento Economico Mexicano S.A.B. de C.V (FEMSA). Heineken will acquire 100 percent of its Mexican beer operations, which are valued at $7.3 billion. The transaction includes FEMSA Cerveza’s export business and the remaining 83 percent of FEMSA’s Brazilian beer business Heineken does not currently own. In return, FEMSA will hold a 20 percent economic interest in the Heineken Group.
 
“This is a compelling and significant development for Heineken,” said Jean-Francois van Boxmeer, chairman and chief executive officer of Heineken, in a statement. “It transforms our future in the Americas and marks the next stage in Heineken’s strong association with FEMSA. 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. The acquisition strengthens considerably our position within the global beer market, expands our portfolio of leading international brands and enhances our leading position in the U.S. import market.”
 
The transaction combines FEMSA Cerveza’s beer brands, including Dos Equis, Sol and Tecate, with Heineken’s global portfolio. Heineken will gain market positions in Mexico and Brazil, where it had been sharing joint ownership with FEMSA. Heineken currently distributes FEMSA Cerveza’s beer brands in the United States.
 
The transaction also provides an opportunity for FEMSA, said Jose Antonio Fernandez Carbajal, chairman of the board and chief executive officer of FEMSA, in a statement: “It increases FEMSA’s operational and financial flexibility, allowing us to focus our attention and resources on the significant growth opportunities for Coca-Cola FEMSA and Oxxo.”
 
Coca-Cola FEMSA is the largest Coca-Cola bottler in the Latin American region and Oxxo is a convenience store chain in Mexico with more than 7,300 stores. Fernandez will be chairman of the newly formed Americas Committee and also will join Heineken N.V.’s Supervisory Board as vice chairman as well as serve on the Heineken Holding N.V. Board. Another member of FEMSA’s senior management team also will serve on the Heineken N.V. Supervisory Board.
 
The transaction is subject to regulatory approvals and is expected to close in the second quarter of 2010.

 Did you enjoy this article? Click here to subscribe to Beverage Industry.  

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

International Pineapple Day at Bahama Breeze

In celebration of International Pineapple Day on April 2, Bahama Breeze locations across the country invited the media and consumers to celebrate with cocktails that feature the tropical flavor of the pineapple. (Photos by Liz Parker and Jennifer Haderspeck)

10/10/13 2:00 pm EDT

Ditch the weighting agents: A cost effective solution for delivering flavors and actives

Available On Demand Learn how to reduce costs and energy use by enabling high oil load emulsions, eliminating the need for weighting agents like brominated vegetable oil (BVO).

Beverage Industry Magazine

BI April 2014 cover

2014 April

The April 2014 Beverage Industry includes a cover story on moonshine, as well as articles about CSD brands, whiskey, and more. Check it out today!

Table Of Contents Subscribe

Beverage Insider eNewsletter

Are you an Insider? Subscribe to Beverage Industry’s weekly e-newsletter to receive news headlines, new product information and magazine highlights.   

Spirits Segments

Which spirits segment will perform the best in 2014?
View Results Poll Archive

THE BEVERAGE INDUSTRY STORE

cleaning-in-place-dairy-foo.gif
Cleaning-in-Place: Dairy, Food and Beverage Operations, 3rd Edition

This book addresses the principles of cleaning operations, water supply issues and the science of detergents and disinfectants.

More Products

Webinars

Beverage Industry Webinars are an easy, effective and convenient way to get educated and informed on the latest industry trends and topics. All Webinars are FREE unless indicated. For more information, check out our Events page!

STAY CONNECTED

facebook40 twitter    youtubelinked