Coca-Cola FEMSA, Grupo Yoli to merge bottling operations
Coca-Cola FEMSA (KOF), a Mexico-based coke bottler, has entered into an agreement with another Mexican bottler Grupo Yoli to merge their bottling operations. The total value of this deal is estimated to be MXN8.8bn ($699.82m).
The boards of directors of both the companies have approved the merger agreement. However, the merger is subject to regulatory and corporate approvals including of The Coca-Cola Company and the Mexican antitrust authority Comisión Federal de Competencia.
Grupo Yoli will receive about 42.4 million KOF shares at a value of MXN184 ($14.5) per share. As a result of this merger, Coca-Cola FEMSA will assume MXN1bn ($79m) in net debt.
A statement issued by Grupo Yoli shareholders said, "In addition to our shared values, we are certain that, together, we can combine the best practices and talent that we have developed at Grupo Yoli with the expertise and track record of Coca- Cola FEMSA to solidify our merged company's market leadership and create value for all of our stakeholders."
Coca-Cola FEMSA chief executive officer Carlos Salazar Lomelin said that this merger will help in continuing expansion within the Latin American region.
"Together, we will capitalize on the geographic proximity of our contiguous territories, the mutual benefit of our shared best practices, and the broad consumer appeal of our integrated multi-category portfolio of beverages to create value for all of our stakeholders," Salazar added.