Mexico Antitrust Agency Rejects Coke-Femsa's Plan of Purchasing Jugos del Valle

28/05/07 Mexican antitrust authorities have rejected plans for soft-drink bottler Coca-Cola Femsa and the Coca-Cola Co. to buy juice company Jugos del Valle, the companies said Friday.

In a press release, Coca-Cola Femsa said it has been informed by the Federal Competition Commission, or CFC, that the regulator objects to the acquisition of Jugos del Valle.

"Once we receive the official notification, we will review CFC's resolution and jointly with Jugos del Valle decide our course of action, including the possibility of contesting such resolution," Coca-Cola Femsa said.

In a separate filing with the Mexican stock exchange, Jugos del Valle said it was in talks with Coca-Cola Femsa and Coca-Cola to evaluate "alternatives to continue with the process."

Coca-Cola Femsa and Coca-Cola agreed last December to buy Jugos del Valle for $380 million plus $90 million in debt.

Jugos del Valle is Mexico's second-largest fruit drinks maker, with annual sales of about $400 million.