Coca-Cola FEMSA Announces a Preliminary Agreement with Grupo Industrias Lacteas in Panama

This transaction would allow the Company to 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.

Oct 15 2010 --- Coca-Cola FEMSA, S.A.B. de C.V., the largest public bottler of Coca-Cola products in the world in terms of sales volume, announces that is has signed a memorandum of understanding by which it could acquire all of the shares of Grupo Industrias Lácteas in Panama.

This understanding provides Coca-Cola FEMSA exclusivity for the purposes of this process, which will include the completion of legal, financial, and operating due diligence. Any resulting transaction would be subject to customary government and regulatory approvals and corporate authorizations.

This transaction would allow the Company to 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. It also represents an attractive growth opportunity in the Panamanian beverage market.

Assuming a transaction is approved and completed successfully, this business will become part of the non-carbonated beverage platform that Coca-Cola FEMSA shares with its partner, The Coca-Cola Company.