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 billion...
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