Mexico's FEMSA seen hunting partner, not buyer

By Chris Aspin - Analysis

MEXICO CITY (Reuters) - Mexican brewer FEMSA (FMX.N: Quote, Profile, Research, Stock Buzz)(FMSAUBD.MX: Quote, Profile, Research, Stock Buzz), seen as a target in the current global beer industry consolidation, is more likely to team up with a partner to face future challenges than let a big-spending giant buy it out.

The maker of Tecate and Sol beer is controlled by a group of conservative families from the northern city of Monterrey that are united by marriage and analysts say money alone will not be enough to break their bonds.

Even if FEMSA, which also makes Bohemia and Dos Equis brews, were to link with a partner for a more global reach its controlling shareholders will be careful to chose one that will not lead to an ugly divorce.

"I see it as very remote that they will cede control of this important asset," said Actinver analyst Mauricio Brocado. "It is more likely that they go for a strategic partner."

FEMSA, the 10th largest brewer in the world by volume, and its local rival Modelo (GMODELOC.MX: Quote, Profile, Research, Stock Buzz), the maker of Corona beer, are often tipped as targets in the consolidation of the industry because of their strong brands and growth outlook.

But both are run by a group of families.

In FEMSA's case, 74 percent of the voting shares are in the hands of families linked to Jose Antonio Fernandez Carbajal, FEMSA's chairman and chief executive.

FEMSA owns 100 percent of its beer division. It bought back a 30 percent stake from Interbrew when the Belgian brewer recently linked with Brazil's AmBev to form InBev (INTB.BR: Quote, Profile, Research, Stock Buzz).