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Friday, December 14, 2012

Coca-Cola FEMSA buys 51 percent stake in Coke's Philippine bottling unit, (NYSE: KOF)

Mexico's Coca-Cola FEMSA SAB de CV , the world's largest coke bottler, will purchase a 51 percent stake in Coca-Cola Co's Philippine bottling operations for $688.5 million in cash to expand its presence in the Philippines. The deal may signal more Asian acquisitions for Coca-Cola FEMSA, a joint venture of Coca-Cola Co and Mexican retailer and beverage company Femsa, as Latin America offers little room for expansion, the company said in October."The market in Philippines represents the expansion of our global footprint beyond Latin America, reinforcing our exposure to fast growing economies," Carlos Salazar Lomelin, Coca Cola FEMSA chief executive officer, said in a statement, adding the Southeast Asian country had healthy growth prospects and a dynamic consumption profile.Currently Coca Cola FEMSA operates in Mexico, Central America, Colombia, Venezuela, Brazil and Argentina.Coca Cola FEMSA will have the option to acquire the remaining 49 percent of Coca-Cola Bottlers Philippines Inc (CCBPI) at any time during the seven years following the closing of the deal, the company said in a statement.

Coca Cola FEMSA SAB de CV is a Mexico-based company engaged in the production and distribution of a variety of non-alcoholic beverages, bottled water and still beverages. Shares of KOF fell by 0.16% or $-0.23/share to $144.93. In the past year, the shares have traded as low as $88.60 and as high as $149.57. On average, 90721 shares of KOF exchange hands on a given day and today's volume is recorded at 159856.