Mexico's Coca-Cola FEMSA open to more deals
MEXICO CITY, June 29 |
MEXICO CITY, June 29 (Reuters) - Executives at Coca-Cola FEMSA, the world's top Coke bottler, said on Wednesday they are open to further deals, just a day after agreeing a merger with family-owned bottler Grupo Tampico in Mexico.
Coca-Cola FEMSA (KOFL.MX) executives said they believe they still have a lot of cash and may consider other acquisitions, after completing their first stock-based deal since the company went public 18 years ago.
"It is possible for us to continue to grow ... and participate in the globalization of the industry in the different parts of the world," said Chief Executive Carlos Salazar, on a call with analysts.
Analysts have speculated for months that Coca-Cola FEMSA, which has a $1.1 billion cash pile after generating strong cash flow for several years, might consider expanding, particularly since fellow Mexican bottlers Arca ARCA.MX and Contal CONTAL.MX merged this month.
Hector Trevino, Coca-Cola FEMSA chief financial officer, told analysts that the company could consider both cash and stock-based acquisitions in the future.
Coca-Cola FEMSA expects to complete its $790 million acquisition of Tampico at the end of the third quarter, pending regulatory approval, executives said. (Reporting by Elinor Comlay; editing by Gunna Dickson)
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