Heineken's Purchase of Femsa Will Boost Presence in Mexico

by: The Business Insider

Dos EquisHeineken (HINKY.PK) won the brew-off for Mexico's Femsa (OTC:FMXUF), brewer of Dos Equis, Tecate, and Sol. The Dutch beer giant will pay $7.6 billion (including debt) for Femsa in an all-stock deal.

The move will boost Heineken's presence as Mexico's economy explodes, and will also help its market share in the U.S. As the AP reports, Heineken was the biggest U.S. import for years, before being passed up by Corona.

The top two brands still account for more than 40 percent of the U.S. import market. Modelo Especial is in third place and Femsa's Tecate in fourth. Corona Light, Dos Equis and Heineken Light are also among the top 10 imported brands, according to trade magazine Beer Marketer's Insights.

Word of the deal first appeared last October, when Heineken and SABMiller (OTCPK:SBMRY) were considered bidders.

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