Coca-Cola Femsa to Buy Panamerican

Coca-Cola Femsa will buy Panamerican Beverages Inc., Latin America’s biggest soft-drink distributor, for $3.6 billion in cash, stock and assumed debt to create the world’s No. 2 bottler of Coca-Cola, Fanta and Sprite.

The Mexico City-based producer and bottler, owned 30% by Coca-Cola Co., will pay $22 a share to Panamco’s Class A holders, more than double last week’s closing price, and $38 a share to Class B shareholders.

Coca-Cola Chief Executive Doug Daft is extending a strategy in Latin America that the No. 1 soft-drink producer has used for years in the U.S. by consolidating bottlers and unifying distribution systems. Coca-Cola needs to improve efficiency in Latin America, which accounts for 25% of sales, investors said.

Shares of Atlanta-based Coca-Cola climbed 31 cents to $44.39 on the NYSE. Coca-Cola owns 25% of Panamco.