Lex: Heineken / Femsa

Heineken on Monday confirmed it was buying the beer operations of Mexico's Femsa, owner of brands such as Dos Equis, Tecate and Sol, in an all-share deal that values the Mexican unit's equity at E3.8bn ($5.5bn). The Dutch brewer had been seen as the frontrunner for the Femsa operations after London-listed rival SABMiller pulled out of the auction. Femsa had hired investment bank Rothschild last year to weigh the options for the unit. The deal is an important victory for Heineken, which had seen Femsa as its last chance to gain a foothold in Latin America. Neil Buckley looks at the reasons behind the deal.