Heineken con limon.

Fomento Economico Mexicano, S.A.B. de C.V. announced that its Board of Directors has unanimously approved a definitive agreement under which FEMSA will exchange its FEMSA Cerveza business unit for a 20% economic interest in Heineken. Under the terms of the agreement, FEMSA will receive 43,018,320 shares of Heineken Holding N.V. and 72,182,201 shares of Heineken N.V., of which 29,172,502 will be delivered pursuant to an allotted share delivery instrument. It is expected that the allotted shares will be acquired by Heineken in the secondary market for delivery to FEMSA over a term not to exceed five years. Heineken also will assume US$ 2.1 billion of indebtedness including FEMSA Cerveza’s unfunded pension obligations. The total transaction is valued at approximately US$ 7.347 billion, based on closing prices of euro 32.92 for Heineken N.V. and euro 29.38 for Heineken Holding N.V. on January 8, 2010, including the assumed debt. Jose Antonio Fernandez Carbajal, Chairman of the Board and Chief Executive Officer of FEMSA, will join Heineken N.V.’s Supervisory Board as a Vice Chairman. Mr. Fernandez will also serve as Chairman of the newly-formed Americas Committee and will be a member of the Heineken Holding N.V. Board. Another member of FEMSA’s senior management team will also serve on the Heineken N.V. Supervisory Board.

Mr. Fernandez said, “We are enthusiastic about this transaction, which positions FEMSA’s beer operations to become an integral part of Heineken’s leading global platform. In the context of the reconfiguration of the global brewing landscape, scale and geographic diversification are more important than ever, and this transaction responds to that imperative.
Heineken presented us with the most compelling opportunity to transform our brewing assets, enabling us to unlock the significant value that we have created during the past decade. The transaction also allows our shareholders, through our significant stake in Heineken, to participate in the long-term value creation we believe will come from aligning FEMSA Cerveza with Heineken. At the same time, it increases FEMSA’s operational and financial flexibility, allowing us to focus our attention and resources on the significant growth opportunities for Coca-Cola FEMSA and OXXO.”

The transaction combines FEMSA Cerveza’s beer brands, including Dos Equis, Sol and Tecate, with Heineken’s global platform and Premium brand portfolio, including Heineken, the iconic and only truly global premium beer brand, as well as Amstel, Birra Moretti and Cruzcampo. Heineken will gain important market positions in Mexico and Brazil, further strengthening Heineken’s worldwide footprint. Under a long-standing agreement, Heineken currently distributes FEMSA Cerveza’s beer brands in the U.S., and the two companies also share joint ownership of their beer operations in Brazil.