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Mexico-based Coca-Cola FEMSA S.A.B. de C.V. (KOF - Free Report) has agreed to purchase 100% of Brazilian peer Companhia Fluminense de Refrigerantes for $448 million in cash. The deal has been approved by Coca-Cola FEMSA's board but still awaits approval from the Brazilian antitrust authority and FEMSA’s franchise bottler The Coca-Cola Company (KO - Free Report) .

Companhia Fluminense produces and distributes trademark beverages of The Coca-Cola Company including Coca-Cola, Fanta, Kuat, Del Valle, and others in São Paulo, Minas Gerais and Rio de Janeiro in Brazil.

The deal will extend Coca-Cola FEMSA’s reach in Latin America, which is successfully emerging as a business hub. Beyond expansion, it will strengthen the supply chain in the Brazilian markets. Notably, among all other Latin American countries, Brazil is expected to lead the growth trajectory. Brazil is set to witness a surge in demand driven by decent economic growth and the resurgence of the middle class. Strong hold in the Brazilian markets will also help Coca-Cola FEMSA to cash in on the FIFA World Cup, which is scheduled for 2014 along with the Olympics in 2016.

Coca-Cola FEMSA is on an acquisition spree and has been acquiring Coke bottlers in Mexico in the last two years. Most recently in Jan 2013, Coca-Cola FEMSA entered into a definitive agreement to acquire another Mexico-based Coca-Cola bottler Grupo Yoli, S.A. de C.V. for $700 million. The company is also expanding its operations beyond Latin America and acquired a 51% interest in Coca-Cola Bottlers Philippines, Inc. in Jan 2013.

Coca-Cola FEMSA is co-owned by the Coca Cola Company and Fomento Economico Mexicano S.A. (FMX - Free Report) – also known as FEMSA. It produces and distributes Coca-Cola, Fanta, Sprite, Del Valle, and other trademark beverages of The Coca-Cola Company, bottled water, juices, teas, isotonics, beer, and other beverages in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil, Argentina and Philippines. Currently, Coca-Cola FEMSA carries a Zacks Rank #4 (Sell).

The Coca-Cola Company has ownership interests in many other bottling operations, including Coca-Cola Enterprises Inc. (CCE - Free Report) , Coca-Cola Hellenic Bottling Company S.A. and Coca-Cola Amatil Ltd.

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