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News Article

FEMSA to Buy Valora to Expand to the EU

By Emilio Aristegui | Wed, 07/06/2022 - 15:20

Mexico’s retail and bottling company FEMSA announced that it is joining forces with Valora to build a major player in the European convenience store and food service market. The agreement between Valora and FEMSA will seek to foster strategic priorities and long-term value creation opportunities.

FEMSA made an all-cash offer to purchase all of the publicly held shares of Valora for CHF 260.00 (US$267.7) per share. “This is equivalent to a premium of 57.3 percent to the volume-weighted average share price of the last 60 trading days and 52.0 percent to the Valora closing share price on July 4, 2022. Based on an external fairness opinion, the Valora Board of Directors unanimously recommended that shareholders accept the offer by FEMSA,” reads a joint press release by Valora and FEMSA.

Valora’s largest stakeholder, which owns 17 percent of its shares, has supported the offer while undertaking to tender the entirety of his shares as part of this offer. The acquisition would allow Valora to accelerate its current growth path by adding FEMSA’s core convenience skill set.

Growing the convenience store and food service (foodvenience) market is vital for both companies, but they also plan to increase their mobile and digital clientele. “Having built a significant store base and convenience and logistics expertise in Latin America during the past four decades, FEMSA has been looking for a platform to grow and develop our proximity retail business in markets outside of Latin America. Valora has earned an excellent reputation in the international convenience and food service business with its sophisticated concept of innovative formats at high-traffic locations, and we look forward to further expanding on this strategy with the continued support of Valora’s management,” said Daniel Rodriguez Cofré, CEO, FEMSA.

Sascha Zahnd, Chairman, Valora, highlighted that the transaction will benefit both companies, considering that it is FEMSA’s first operation in the EU. The joint growth strategy will focus on creating sustainable value, following a unanimous decision that involved the entire Board of Directors.

The data used in this article was sourced from:  
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Emilio Aristegui Emilio Aristegui Junior Journalist and Industry Analyst