Coca-Cola Femsa of Mexico has said it has signed a preliminary deal under to buy all the shares of dairy company Grupo Industrias Lacteas of Panama. The memorandum of understanding, which give Coca-Cola Femsa exclusivity, will include completion of legal, financial, and operating due diligence. It is subject to government and regulatory approval and corporate authorisations, the company says in a press release.
If the deal goes through, Coca-Cola Femsa, the world’s leading public bottler of Coca-Cola products in terms of sales volume, would “enter into the milk and dairy products category, one of the most dynamic segments in terms of scale and value in the non-alcoholic beverage industry in Latin America.” The Mexican company notes the transaction “also represents an attractive growth opportunity in the Panamanian beverage market.”
Grupo Industrias Lacteas has three production plants that serve the Panamanian market. It employs close to 1,800 people and is Panama’s leader in the dairy segment.