Dec 14 Mexico's Coca-Cola FEMSA SAB de CV
, the world's largest coke bottler, will buy a 51
percent stake in Coca-Cola Co's Philippine bottling
operations for $688.5 million in cash to expand its presence in
The deal may signal more Asian acquisitions for Coca-Cola
FEMSA, a joint venture of Coca-Cola Co and Mexican retailer and
beverage company Femsa, as Latin America offers
little room for expansion, the company said in October.
"The market in Philippines represents the expansion of our
global footprint beyond Latin America, reinforcing our exposure
to fast growing economies," Carlos Salazar Lomelin, Coca Cola
FEMSA chief executive officer, said in a statement, adding the
Southeast Asian country had healthy growth prospects and a
dynamic consumption profile.
Currently Coca Cola FEMSA operates in Mexico, Central
America, Colombia, Venezuela, Brazil and Argentina.
Coca Cola FEMSA will have the option to acquire the
remaining 49 percent of Coca-Cola Bottlers Philippines Inc
(CCBPI) at any time during the seven years following the closing
of the deal, the company said in a statement.
Coca-Cola FEMSA said in February that it was considering a
controlling stake in CCBPI and had signed an agreement with U.S.
beverage giant Coke giving it the first chance to make a deal
for the Asian bottler.
In October the company said it expected to close the deal by
the end of the year, after the acquisitions of local rivals
Grupo Tampico, Grupo CIMSA and Grupo Fomento Queretano, led to a
20 percent jump in third-quarter revenue.
The Philippines operation has 23 production plants and is
expected to sell about 530 million unit cases of beverages in