MONTERREY, Mexico--(BUSINESS WIRE)--Embotelladoras Arca, S.A.B. de C.V. (“Arca”) (BMV: ARCA *), and Grupo Continental S.A.B. (“Contal”) (BMV: CONTAL *) announced today that their merger was approved at the Shareholders’ Meetings of both companies.
The merger will be carried out as previously announced through the exchange of newly issued Arca shares for Contal shares, at an exchange ratio of 0.625 Arca shares per Contal share. The new entity will be named Arca Continental, S.A.B. de C.V. The transaction will be completed once the merger agreements have been filed with the corresponding Public Business Registries.
This is one of the largest transactions in the Latin American Coca-Cola bottling system in recent years.
Led by the talent and professionalism of its team, Arca Continental will serve over 53 million consumers via nearly 700 thousand points of sale. The consolidation of these two companies will trigger significant efficiencies and value creation opportunities supported by a strong financial position.
Manuel L. Barragán Morales, Chairman of the Board of Directors of Arca, stated, “This is a historic day as our shareholders approved our merger to form Arca Continental, the second-largest Coca-Cola bottler in Latin America and fourth-largest in the world. We have already launched the integration of our organizations which will strengthen our leadership, generate synergies and benefit our shareholders, customers and consumers.”
Cynthia H. Grossman, Chairman of the Board of Directors of Grupo Continental, stated, “Arca Continental represents the beginning of a new era in the Coca-Cola bottling system in Latin America. Our two companies will be sharing a unique blend of corporate cultures and business philosophies that will guide and encourage a successful method of conducting our day to day operations, as well as solidify a professional management team and establish an enduring platform of investment and growth for future generations.”
About Arca
Arca produces, distributes and sells beverages under The Coca-Cola Company brand. Arca was formed in 2001 through the merger of three of the oldest bottlers in Mexico, making it the second-largest bottler in Latin America. The Company, headquartered in Monterrey, Nuevo León, serves the northern region of Mexico, as well as Ecuador and Northern Argentina. Arca also produces and distributes Bokados brand snack foods. For more information, visit www.e-arca.com.mx
About Grupo Continental
Grupo Continental is the 13th largest Coca-Cola bottling group worldwide. The Company started operations in 1964 and now serves over 14.5% of Mexican territory, including the States of Coahuila, Durango, Zacatecas, Aguascalientes, San Luis Potosí, Jalisco, and Colima. Its headquarters are located in Tampico, Tamaulipas. For more information, visit www.contal.com