Joint Venture with Interbrew Subsidiary Labatt
Friday, 03/12/2004, 12:00:00 am
Monterrey, México – March 12, 2004 – FEMSA announced today that its United States subsidiary, Wisdom Import Sales Co. ("Wisdom"), has commenced litigation in the United States District Court for the Southern District of New York, in Manhattan, against Interbrew, Labatt Brewing Company Limited ("Labatt"), and certain of their affiliates.
The litigation seeks to enjoin certain aspects of the transaction announced on March 3, 2004 by Interbrew and the Brazilian brewer AmBev, including those parts of the transaction that involve a transfer of the majority interest in the limited liability company that governs the United States joint venture between FEMSA subsidiary FEMSA Cerveza and Interbrew subsidiary Labatt.
It is FEMSA's position that Wisdom's minority shareholder rights will be imminently violated because, among other things, the transfer of ownership is scheduled to occur in connection with the announced transaction, but without the required approval of Wisdom or its directors on the board of the joint venture company.
FEMSA found it necessary to take this legal action in order to preserve Wisdom's rights as the holder of the minority interest in the joint venture company.
FEMSA is the leading beverage company in Latin America. It controls an integrated beverage platform that comprises the largest Coca-Cola bottler in the region, Coca- Cola FEMSA; the second largest brewer in Mexico and important beer exporter to the United States, FEMSA Cerveza; and Oxxo, the largest and fastest growing convenience store chain in Mexico with over 2,750 stores.back to top