The transaction has been approved by the boards of directors of Arca and Contal. The agreement is subject to customary corporate and regulatory approvals, including final approval from The Coca-Cola Company and Mexico’s antitrust authority, the Comision Federal de Competencia.
Final closing of the transaction is expected to take place during the second quarter of 2011.
The merger will be carried out through an exchange of newly issued Arca shares for Contal shares at an exchange ratio of 0.625 Arca shares per Contal share. As a result, Arca will issue 468,750,000 new shares. Shares of the new company will be traded on the Mexican Stock Exchange under a new ticker symbol to be determined at a later date. The aforementioned exchange ratio was agreed upon using a merger of equals basis.
In the region’s largest bottling transaction in recent years, the operations of both entities will be integrated under a single company. The company will be named Arca Continental, with estimated sales of 1.2bn unit cases, thereby positioned as the second largest bottler in Latin America.
Source: Arca
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