Mexico’s Femsa to buy Swiss store operator Valora for $1.15 billion

Mexican bottler and retailer company Fomento Economico Mexicano (Femsa) on Tuesday offered to buy Swiss kiosk operator Valora in a 1.1 billion Swiss franc ($1.15 billion) deal as part of its push to expand in Europe.Logo of Coca Cola Femsa, the largest Coke bottler in the world, is pictured at its headquarters in Monterrey

Femsa, which had a total sales of more than $27 billion in last year, made an offer of CHF 260.00 per share, a premium of 52% to Valora’s last closing share price, Valora said in a statement.

Valora said its board has recommended shareholders to accept the offer, which was supported by its largest individual shareholder with a roughly 17% stake.

Ernst Peter Ditsch is Valora’s largest shareholder, with a 16.91% stake as of July 4, according to Refinitiv Eikon data.

The deal includes plans to speed up growth in Switzerland, Germany and other European countries where Valora operates convenience stores and food service, Valora said.

Credit Suisse is advising Femsa and is its offer manager, while J.P. Morgan is advising Valora on the deal. The transaction is to be funded with Femsa’s available cash on hand, the two companies said.

The offer, which remains subjected to regulatory approval, is expected to close in end-September or beginning October.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s