MEXICO CITY (Reuters) - Mexico’s Coca-Cola FEMSA (KOFL.MX), the world’s largest Coke bottler, said on Friday it reached an agreement to purchase 100 percent of Brazilian peer Companhia Fluminense for $448 million in cash.
The Monterrey-based company, a joint venture of Coca-Cola Co (KO.N) and Mexican firm Femsa (FMSAUBD.MX)(FMX.N), said in a filing the deal was subject to approval by Brazil’s antitrust authority, the Conselho Administrativo de Defesa Economica.
The Mexican company also said it would seek the approval of Coca-Cola for the transaction.
Coke Femsa said Companhia Fluminense, which produces and distributes Coca-Cola drinks in 141 cities in the states of Sao Paulo, Minas Gerais and Rio de Janeiro, had estimated pro forma consolidated earnings before interest, taxes, depreciation and amortization in the year ending March of $40 million.
Coke Femsa has been snapping up smaller, family-owned Coke bottlers in Mexico in the last two years, and recently made its first foray outside of Latin America.
Reporting by David Alire Garcia; Editing by Leslie Adler