Fire sale
In January 2006, Mexico’s beer and beverage group Femsa bought control of Brazil’s Cervejarias Kaiser from Molson Coors Brewing Co. for USD 68 million in cash. Femsa paid significantly less than Molson which had taken over the Brazilian brewer three years ago for USD 765 million. However, Femsa also assumed Kaiser’s debt liabilities of USD 60 million and contingent tax liabilities of up to USD 258 million. As part of the transaction, Molson Coors, the Canadian-American brewer, will keep a 15 percent share of Kaiser, while Dutch brewer Heineken has seen its stake in the Brazilian brewer drop to 17 percent from 20 percent.
Select offer and read on
6 print issues