M&A News: Cola wars
Latin America’s Coca-Cola bottlers tussle over the Brazilian market while elsewhere telecom acquisitions heat up
By Ben MillerBrazil has been the center of attention
for Latin America’s Coca-Cola bottlers.
Chile’s Embotelladora Andina and
Mexico’s Coca-Cola Femsa (KOF) both gained
sizeable footprints. KOF agreed to pay $1.86 billion for
Spaipa, the second-largest privately owned coke bottler in
Brazil, two months after picking up Companhia Fluminense de
Refrigerantes in July for $448 million. Analysts said KOF paid
a high price for Spaipa, but the market position might make it
worthwhile. Not to be outdone, Andina moved for Companhia de
Bebidas Ipiranga in a deal valued at $540 million. The purchase
was seen as fair to slightly expensive, and adds to
Andina’s existing assets in Brazil as it expands
outside Chile. In telecoms, Millicom agreed to merge its
Colombian wireless operations with Empresas Públicas de
Medellin’s (EPM) fixed-line operator UNE. The two
will form a new combined entity. The deal values UNE at $2.1
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.