Femsa Gulps Down Panamco
Femsa Gulps Down Panamco Mexican soft drink company
Coca-Cola Femsa in January swooped in to take control of
Panamerican Beverages (Panamco), paying $3.6 billion for the
company. Coca-Cola Femsa is putting down $2.72 billion in cash
and stock, and assuming a further $880 million in debt. Panamco
is the largest soft drink maker in Latin America. The
acquisition will create the world's second-largest bottler of
Coca-Cola, Fanta and Sprite soft drinks. Femsa expects the
merged group to post annual revenues of $4.6 billion. Coca-Cola
Femsa will pay $22 a share to owners of Panamco's Class A
shares and $38 a share to Class B shareholders. Venezuela's
Cisneros Group owns 8.98% of Panamco's B shares. After the deal
was announced, the price of Panamco's Class A shares, which
trade on the New York Stock Exchange, doubled to more than $20.
However, Coca-Cola Femsa's stock price dropped 15%...
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