Femsa Buys Mexican Rival But BMI Sees Much Bigger Things To Come

Consolidation in the Mexican soft drinks sector rolls on with Coca-Cola Femsa announcing it is to acquire rival Coca-Cola bottled Grupo Cimsa in a deal worth MXN11bn (US$830mn). The move will see Cimsa shareholders receive 75.4mn newly issued Femsa shares, while Femsa will also assume around MXN2.1bn in net debt. The structuring of the deal will only have a limited impact on Femsa's financial position, leaving the firm free to pursue further acquisitions. BMI is still of the belief that the company will look to globalise its operations sooner or later, with a landmark acquisition in another emerging

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