Brewer Heineken NV (HINKY) said Monday it will acquire the beer operations of Fomento Económico Mexicano SAB de CV (FMX), or Femsa, through an all-share transaction, valuing Femsa at EUR5.3 billion.

"This is a compelling and significant development for Heineken which will transform our future in the Americas, offering opportunities for accelerating sales in the rapidly growing markets of Brazil and Mexico", said Heineken Chief Executive Jean Francois van Boxmeer.

Investors welcomed the news. At 0910 GMT, Heineken shares were up 4% at EUR34.25.

Van Boxmeer said the percentage of Heineken's earnings before interest, tax and amortisation from emerging markets will rise to 40% from 32% after the deal.

Femsa will hold a 20% stake in Heineken Group, with 12.5% of Heineken NV and 14.9% of Heineken Holding. It will also have the right to appoint two non-executive representatives to Heineken's board, and one of these representatives will also be appointed to the Board of Directors of Heineken Holding.

Femsa will become the second largest shareholder of Heineken NV while Heineken Holding retains its 50% stake in Heineken NV.

Heineken Chief Financial Officer Rene Hooft Graafland said the structure of the all-share deal was at Femsa's request. "Femsa wanted to diversify by reinvesting in a major brewer," he said.

The Dutch brewer estimates that annual cost synergies will amount to EUR150 million by 2013, whereby the deal is earnings per share accretive after two years.

Following the structure of the all share deal, Heineken's net debt to EBITDA ratio remains largely unchanged at 3.1.

Heineken expects to close the transaction in the second quarter of 2010.

By Anna Marij van der Meulen; Dow Jones Newswires, +31-20-5715 201; annamarij.vandermeulen@dowjones.com
Heineken (EU:HEIO)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024 Click aqui para mais gráficos Heineken.
Heineken (EU:HEIO)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024 Click aqui para mais gráficos Heineken.