TEXT OF STORY
Steve Chiotakis: The Dutch brewing company Heineken is buying the second-largest beer maker in Mexico, Femsa. It’s a deal worth more than $7.5 billion. More from Marketplace European Correspondent Stephen Beard.
Stephen Beard: The two companies do seem to fit together. Heineken already distributes Femsa beers in the United States. The deal will give Heineken a leading position in the Mexican market.
Olly Wehring is with Just Drinks.com. He says buying Femsa is a good move for the Dutch brewer:
Oily Wehring: Heineken is also very quiet in Mexico which is a large beer market — it’s in the top five for sure. So it does make sense for Heineken to get into bed with Femsa, bearing in mind that they already work together in the U.S.
The markets had been expecting Sab Miller to win the bidding for Fesma. But in the end, Miller got cold feet over the price and pulled out. Heineken says the deal could cut its costs, eventually .saving it more than $220 million a year.
In London, this is Stephen Beard for Marketplace.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.