Heineken Sets Femsa Deal

Heineken NV's US$5.4BN deal to buy the beer unit of Mexican drinks and retail giant Femsa gives the Dutch brewer a foothold in Latin American, reducing its reliance on slower-growth EU markets. The all-stock transaction will put the Heineken and Newcastle Brown Ale brands under the same roof as Tecate, Sol, Dos Equis and Bohemia. With the pact, Heineken becomes the No 2 brewer in Mexico and bolster its presence in Brazil and the US Heineken also will assume $2.1BN of debt. Femsa will get a 20% stake in Heineken under the deal.