This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Heineken Agrees to Buy Mexican Brewer

AMSTERDAM ( TheStreet) -- Heineken, the world's third-largest brewer, confirmed Monday it has reached an agreement to buy the beer business of Mexico's Fomento Economico Mexicano (FMX) in a stock transaction.

In a statement on its Web site, Heineken said the implied equity value of Femsa Cerveza is $5.5 billion, based on Heineken's closing stock price on Jan. 8. Including net debt and pension obligations of $2.1 billion, the total implied enterprise value for Femsa Cerveza is about $7.6 billion.

The Wall Street Journal had reported earlier that Heineken was close to buying the Femsa beer unit for between $7.5 billion and $8 billion.

Most bankers, analysts and industry players following the auction had expected Britain's SABMiller, the world's second-largest brewer, to buy Femsa Cerveza. However, sources told the Journal that SABMiller had dropped out of the race just before Christmas.

Anheuser-Busch InBev (BUD) is the world's top brewer.

Heineken has a small presence in emerging economies, unlike SABMiller which already has big operations in Latin America. Buying Monterrey-based Femsa would give Heineken a big role in a large and profitable emerging beer market and offset the slow-growing markets in Western Europe, the Journal notes.

Under terms of the transaction, Femsa will hold a 20% economic interest in Heineken.

The acquisition is expected to close in the second quarter of 2010.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BUD $128.46 -0.53%
FMX $96.38 -1.56%
AAPL $118.30 0.42%
FB $104.24 -1.15%
GOOG $742.60 -1.02%


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs