Heineken, Dos Equis brew a $7.6 billion deal

By Ben Rooney, staff reporter


NEW YORK (CNNMoney.com) -- Heineken announced plans Monday to buy the beer operations of Mexico's Fomento Económico Mexicano (Femsa) for about $7.6 billion, as the Dutch brewer moves to expand its operations in the Western Hemisphere.

The deal will give Heineken, which brews Amstel and other beers, control of Femsa's key export brands, including Dos Equis, Tecate and Sol.

The companies said the all-stock deal includes about $2.1 billion in debt and pension obligations.

"The acquisition strengthens considerably our position within the global beer market," Jean-François van Boxmeer, chairman and chief executive of Heineken, said in a statement. "[It] expands our portfolio of leading international brands and enhances our leading position in the U.S. import market."

Under the terms of the deal, Femsa will gain a 20% economic interest in the Heineken Group, and will have the right to appoint two non-executive representatives to Heineken's board.

"Heineken presented us with the most compelling opportunity to transform our brewing assets," José Antonio Fernández Carbajal, chairman of the board and CEO of FEMSA, said in a statement.

"In the context of the reconfiguration of the global brewing landscape, scale and geographic diversification are more important than ever," Carbajal said. "And this transaction responds to that imperative."

The deal, which is subject to shareholder approval, is expected to close in the second quarter. Heineken (HINKY) expects to see cost savings of more than $200 million by 2013 as a result of the merger.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.94%4.13%
15 yr fixed3.04%3.08%
5/1 ARM3.55%3.40%
30 yr refi4.02%4.17%
15 yr refi3.10%3.14%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 16,614.81 215.14 1.31%
Nasdaq 4,419.48 103.41 2.40%
S&P 500 1,941.28 37.27 1.96%
Treasuries 2.21 0.03 1.24%
Data as of 3:04am ET
Company Price Change % Change
Apple Inc 102.47 2.71 2.72%
Bank of America Corp... 16.60 0.34 2.09%
The Coca-Cola Co 40.68 -2.61 -6.03%
Regions Financial Co... 9.26 0.10 1.09%
Yahoo! Inc 40.18 0.90 2.29%
Data as of Oct 21

Sections

Yahoo was in the spotlight Tuesday as it released its third-quarter results, its first earnings release since the Alibaba IPO. More

Startups focusing on "ag tech," or agricultural technology, are gaining the attention of farmers and investors More

Foreign workers, lured by false promises of good jobs and benefits in America, soon find themselves enslaved in plain sight as victims of labor trafficking, a report from the Urban Institute finds. Here's how it can happen. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.