Heineken confirms Femsa beer buy

Monday 11 January 2010

Heineken on Monday confirmed it was buying the all beer operations of Mexican conglomerate Femsa in an all share deal valuing the Mexican firm at €3.8bn.

Including debt and pension obligations 'the total implied enterprise value' is approximately €5.3bn ($7.6bn), Heineken said.

Rival SABMiller had pulled out of the bidding because it is not prepared to match Heineken's offer, a person 'with knowledge' of the talks told the Business Week website.

Femsa owns the Dos Equis, Tecate and Sol brands. According to the Financial Times, Heineken has viewed the Femsa business as its 'last chance' to gain a foothold in the Latin American market. Femsa brands account for slightly less than half the Mexican beer market, the paper said.

For the Heineken press release, click here

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