Mexican beverage giant Femsa to make entry into Europe through acquisition of Valora

SWITZERLAND – Fomento Económico Mexicano (Femsa), a Mexican multinational beverage and retail company, has offered a CHF1.1 billion (US$1.15 billion) cash in an acquisition deal of Valora, a Swiss convenience & food service provider.

The offer, which is subject to customary terms and conditions as well as regulatory approvals, is expected to be settled at the end of September or the beginning of October.

Femsa operates the largest independent Coca-Cola bottling group in the world, and the largest convenience store chain in Mexico.

Well known in Mexico for its convenience store chain Oxxo, Femsa is also the second-largest shareholder of Heineken N.V.

The eyed Swiss kiosk operator Valora has around 2,700 small-scale points of sale located across Switzerland, Germany, Austria, Luxembourg, and the Netherlands.

The company is also one of the world’s leading producers of pretzels and owns other brands including Brezelkönig and Caffè Spettacolo.

Under the agreement, the registered office and headquarters of Valora will remain in Muttenz, Switzerland, and the company will continue to operate under its current name.

The Mexican multinational beverage also intends to have Valora apply with SIX Exchange Regulation for the delisting of the Valora shares in accordance with the Listing Rules.

Once the settlement of the offer has been completed, Valora is expected to accelerate Femsa’s entry into Europe.

The acquisition will also facilitate the development of European markets as the European retail affiliate within FEMSA’s Proximity Division.

The company’s CEO Daniel Rodriguez said in a conference call, cited by Reuters, that Femsa sees Valora as “an entrance gate” to the continent.

FEMSA expects to complement these plans with the unique set of capabilities and new initiatives it has developed in other markets, according to the press release.

Valora CEO Michael Mueller commented that the Swiss retail holding company aims to pro-actively drive the growth of the sector and can benefit from FEMSA’s resources and extensive experience as a leading retail company.

He noted that the new scale and opportunities offered by the transaction with FEMSA, as well as its willingness to continue implementing Valora’s successful growth strategy convinced Valora’s Management to accept being part of Femsa.

Femsa emphasized that numerous existing business relationships and partnerships in Switzerland and internationally will not be affected by the transaction between Valora and FEMSA and will be strengthened and expanded by the targeted growth.

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