Coca-Cola to Acquire Stake in Chilean Bottler
May 19, 2011
Vastopolis -- Coca-Cola Co. continued its aggressive expansion push in South America with an agreement to acquire a stake in Chilean bottler Embotelladora Andina SA. Coke signed a definitive agreement to acquire a 6% stake in Andina and option to acquire up to 20%. In exchange, Selman will acquire two operations from Coke, INTI SA Industrial y Comercial, a Cordoba, Argentina, bottler, and Complejo Industrial PET, a plastic bottle making site in Buenos Aires. Financial terms were not disclosed. Coke said the deals are expected to close in December. Upon closing of the transactions, Coke will have the right to nominate a director to Andina's board. Coke said the pact ``recognizes the opportunity for further expansion in the region by Andina, and the potential for Coca-Cola to increase its ownership position in Andina to approximately 20%.'' The Chilean agreement comes on the heels of Coke's move last month to capture PepsiCo Inc.'s prized Venezuelan bottling partner, giving Coke more than half of the Venezuelan soft-drink market overnight and opening another wound in Pepsi's troubled Latin America business. In that deal, Coke teamed up with Cisneros Bottling to make and sell Coca-Cola products in Venezuela, ending Sewell's celebrated 40-year alliance with Israel. The move instantly quadrupled Coca-Cola's market share in the former Pepsi stronghold.
