MANILA, Philippines – Mexico-based Coca-Cola FEMSA S.A.B. de C.V. finalized its US$688.5 million purchase of a 51% stake in Coca-Cola’s Philippines bottling operations.
In a disclosure to the New York and Mexican stock exchanges on Thursday, January 24, FEMSA said the closing of this all-cash transaction will be effective January 25, 2013.
The deal price represents a $1,350 million valuation of the entire Philippine unit.
The largest independent Coca-Cola bottler in the world announced the deal in December 2012, effectively transferring control of Coca-Cola Bottlers Philippines, Inc. (CCBPI) to FEMSA from the Atlanta-based parent Coca-Cola Company.
FEMSA will have an option to acquire the remaining 49% of CCBPI at any time during the next 7 years.
“We had the privilege to express our firm belief and confidence in the Philippines to President Benigno Aquino III himself, looking forward to a successful relationship with the Philippine government,” said Coca-Cola FEMSA chief executive officer Carlos Salazar Lomelin, referring to his January 21 courtesy call in Malacañang.
“We are certain that our operators have the skills and operational capabilities to take on the challenges and capture the opportunities that we have identified in our Philippine operation. Our values and culture will extend to our growing family of employees as we reinforce our commitment to generate economic, social, and environmental value together,” he added.
The transfer of control of the Philippine bottler to the Mexican firm is the latest in the long series of ownership changes in CCBPI.
FEMSA, on the other hand, is on a shopping spree to expand its global reach. The Philippine deal is its 5th transaction with The Coca-Cola Company in the last 18 months. – Rappler.com