Coca-Cola FEMSA to merge with Grupo Yoli
Posted by Ken Hayes
Two companies involved in bottling Coca-Cola products in Mexico are to merge their operations, following successful business negotiations.
Coca-Cola FEMSA will join forces with Grupo Yoli, which currently carries out most of its bottling operations in the states of Guerro and Oaxaca, Food Ingredients First reports.
The deal will also see Coca-Cola Femsa adding a 10.14 per cent stake in leading Mexican sugar producer Promotora Industrial Azucarera, taking its total holding in the firm to 36.3 per cent.
Grupo Yoli chief executive Carlos Salazar Lomelin said: "At this point in our history, we are proud to merge with Coca-Cola FEMSA, a like-minded company with a diversified geographic presence, an experienced management team and industry-leading growth prospects."
The deal will be conditional on shareholder agreement at Extraordinary general meetings called by both firms, as well as approval from Mexico's antitrust authority, the Comision Federal de Competencia.
One piece of M&A activity held up by this body recently was the purchase of Pfizer Nutrition by Nestle, although its decision in December to block the move was one Nestle can appeal.