Fomento Economico Mexicano SAB bought more companies than any other in Mexico last year while expanding its burgeoning pharmacy business. Now it’s got a billion euros ($1.1 billion) of fresh ammunition.
That’s likely to translate into new acquisitions as the company looks to replicate its success in building Latin America’s largest convenience-store chain and biggest Coca-Cola bottler, according to Corp. Actinver SAB. One possible target: some of Mexico’s 11,000 gas stations. Femsa’s already adding service stations and the industry is on the verge of transformation since the nation junked a state oil monopoly dating back to 1938.
Femsa and its bottling unit, Coca-Cola Femsa SAB, have completed 19 deals worth a total $6.2 billion in the last five years, the most in Latin America among convenience-store, pharmacy or non-alcoholic beverage companies. Femsa’s sale of euro-denominated debt last week reloads the war chest after it bought drug-store chains last year, including Chile’s Farmacias Cruz Verde SA.