Global pharmaceutical company Merck has struck a joint venture agreement with Brazil’s Supera Farma Laboratorio, a pharmaceutical firm, for the distribution of generic pharmaceuticals. In the deal, Merck will directly partner with Cristalida and Eurofarma, two of Brazil’s largest pharmaceutical companies and co-owners of Supera, to distribute and promote a portfolio of 30 products, the company says. Merck will control the Super Farma JV with a 51% stake, and the remaining stake held by Cristalida and Eurofarma. The Brazilian partners are giving Merck control in exchange for contributing a number of product brands. Merck officials declined to give more specifics about the deal and could not say how many of the 30 products held by the JV will come from Merck. A spokeswoman does say that the partners expect the JV to reach $500m in sales by 2017.
Category: Regions
Bladex Preps MXP Bond
Banco Latinoamericano de Comercio Exterior (Bladex) is looking to issue up to MXP3bn ($235m) in the Mexican domestic bond market. The bonds will have a tenor of 3-5 years and will pay a spread over TIIE, with tentative pricing scheduled for mid March. Proceeds are destined to fund operations. The issuance is part of a MXP10bn program and represents a debut in the Mexican bond market for the Panama-based LatAm supranational bank which specializes in foreign trade. HSBC and Santander are leading the issuance.
Findeter Taps Colombian Market
Colombian state-owned development finance agency Findeter has raised COP400bn ($223m) in a domestic bond sale. The value represents an increase from the originally planned COP200bn. A COP104.6bn 1.5-year tranche pays the DTF+1.64%, a COP65.9bn 2-year tranche pays DTF+1.74%, and a COP229.5bn 5-year tranche pays IPC+3.78%. Findeter is rated AAA on a national scale. It previously issued in October, raising COP399bn. Findeter coordinated the offer, aided by a group of local brokerages.
More Mexican Bottling Mergers on Horizon
More Mexican Coca-Cola bottling acquisitions are on the horizon and perhaps some regional expansions as well. Timing, however, may be later rather than sooner as targets hold out for better pricing. Mexico-based Actinver analyst Karla Peaa expects bottlers Arca Continental and Corporacion del Fuerte could mark the year’s first link-up. This is because the former has a large chunk of Northern Mexico’s market while the latter controls Chihuahua, Sinaloa and Baja California, the other three remaining large markets in the north. “A Continental, Corporacion del Fuerte deal makes the most sense,” Pena notes. “It will provide Continental with a bigger territory while reducing production and transportation expenses.” Fernando Olvera, a Coca -Cola Femsa analyst with BBVA in Mexico City, agrees that an Arca Continental-Fuente combination may be on the cards, but that a deal could take some time to hatch. Fuerte has hinted it will not sell cheaply. “We are definitely going to see more of these deals in Mexico in coming months,” says HSBC analyst Lauren Torres. “There are still many independently run companies willing to sell to gain scale and cut costs amid high commodity prices.” Coca-Cola Femsa, Mexico’s largest bottler of Coca-Cola products, is also likely to make more acquisitions in Mexico to consolidate its domestic lead before pursuing deals elsewhere. Arca Continental’s acquisitions may apply pressure to Femsa to buy or risk losing its market lead. Apart from del Fuerte, other Mexican bottlers up for grabs include Corporacion Rica, Embotelladora de Colima, Yoli de Acapulco, Bepensa, Bebidas Refrescantes de Nogales, and Embotelladora del Nayar The market has already seen Coca-Cola Femsa buy Mexican bottlers Grupo Tampico, Cisma and Queretano for $2bn in total. Recent acquisitions are expected to boost Coca-Cola Femsa’s sales 30% and generate synergies of $60m after the integrations are completed, giving Femsa 53% of the market. Arca Continental, meanwhile, will control
CABEI Signs $65m Loan With German KfW
The Central American Bank for Economic Integration (CABEI) has signed a 10-year, $65m bilateral loan with German development bank Kreditanstald fur Wiederaufbau (KfW) for renewable energy and regional infrastructure as it relates to green projects. The loan has a 3 year grace period and a competitive interest rate over Libor, says a person familiar with the deal. CABEI and KfW declined to elaborate on the interest rate. KfW has a history of financing development with CABEI since 1969, which over the last 10 years has funded some $400m in small and medium enterprise, renewable energy, infrastructure and health projects, adds a person familiar with the deal.
Brasil Foods Strikes Chinese JV
Brasil Foods (BRF) has struck a joint venture agreement with Dah Chong Hong Limited (DCH), one of China’s largest food, automobile and consumer product companies, with the intent of developing BRF’s distribution and production presence in China. Under the 50-50 agreement, the partners will focus on developing BRF’s Sadia brand in the country and building capacity in sales and other stages of the business, BRF says. BRF officials could not immediately comment further on the deal. Officials at DCH could not be reached for comment. As part of the JV, BRF will devote its efforts to production and marketing, while DCH will enhance the supply chain and distribution sides of the business. The partners estimate that they will generate revenues of roughly $450m during the first year of operations.
Findeter to Issue Local Bonds
Colombian state-owned development finance agency Findeter is expected today to issue COP200bn ($111.7m) in domestic bonds, with the option of selling up to COP400bn should conditions allow, says a person familiar with the deal. The borrower will be able to choose among a 1.5-year tranche linked to the DTF rate, a 2-year linked to the DTF, and a 5-year linked to CPI. Findeter, rated AAA on a national scale, is coordinating the sale itself, aided by a group of local brokerages. It last issued bonds in the local markets in October, raising COP399bn.
Carso Set to Delist Cicsa
Carlos Slim’s Grupo Carso has raised its stake in the Carso Infraestructura y Construccion (Cicsa) construction subsidiary to 99.88% through a buyback offer, allowing it to proceed with a delisting of the company. Carso spent MXP6.77bn ($533m) to buy up 825.4m shares, or 32.82%, through an offer closed last week. It paid MXP8.20 per share.
Credito Talks Price on MXP Bond
Mexico’s Credito Real is heard looking to pay TIIE+300bp area on an up to MXP1bn ($79m) domestic bond issuance, scheduled to price February 21. The lender has shortened the maturity to 2.7 years from an initially planned 3 years, and pushed back the sale from this week. It plans to use proceeds from the bonds, part of a MXP2.5bn debt program, to refinance debt. BBVA Bancomer is managing the transaction, rated A/A minus on a national scale. Credito Real paid TIIE+325bp in November when it last issued a 3-year floater, in a MXP400m sale partially guaranteed by Nacional Financiera and the IDB.
Facileasing Nears Debut Foray
Investors are heard discussing TIIE+45bp area on an up to MXP1bn ($79m) local 3-year bond from Mexico’s Facileasing. Pricing is scheduled for February 22. This issuance would represent the first 3-year bond for the Mexican fleet leasing company, a frequent issuer of shorter commercial paper, and its first debt offering since it was acquired by BBVA Bancomer in July 2011. BBVA Bancomer is managing the sale, rated AAA on a national scale.