Heineken Buys Up Femsa Beer Business

Heineken has acquired the beer operations of the Mexican drinks giant FEMSA in exchange for a 20 per cent share in the Dutch brewer. The total transaction, which is valued at $7.437bn, will give Heineken a major new platform for growth in Latin America. Under the deal, Heineken will take charge of Fomento Economico Mexicano (FEMSA) Cerveza, and its beer brands, including Dos Equis, Sol, and Tecate. In exchange, Heineken will assume the $2.1bn debt at FEMSA Cerveza, and FEMSA will receive 43m shares in Heineken Holding, valued at $32.92, and 72m shares in Heineken, valued at $29.38. Heineken said the deal presents the company with several "compelling strategic benefits."