Mexico's Coke Femsa says to buy Brazil's Vonpar in US$1.1 bln deal

Coca-Cola Femsa, Latin America's largest Coke bottler, on Friday said it would buy Brazilian bottler Vonpar in a cash, stock and debt deal valued at 3.5 billion reais (US$1.09 billion).

Coca-Cola Femsa said in a statement that its Brazilian unit Spal will pay 1.73 billion reais to Vonpar's owners as well as another 688 million reais that will be converted into Coca-Cola Femsa shares.

Spal will also issue 1.09 billion reais in convertible three-year debt to Vonpar owners.

Coke Femsa said it expects to see savings of around 65 million reais from the acquisition within two years.

Shares in Coca-Cola Femsa rose nearly 4 percent on Thursday to close at their highest since late July. On Friday they rose about 2 percent.