Bulletin: Fomento Economico Mexicano's Acquisition Of The Remaining 40% Stake In Socofar Is In Line With Growth Strategy - S&P Global Ratings’ Credit Research

Bulletin: Fomento Economico Mexicano's Acquisition Of The Remaining 40% Stake In Socofar Is In Line With Growth Strategy

Bulletin: Fomento Economico Mexicano's Acquisition Of The Remaining 40% Stake In Socofar Is In Line With Growth Strategy - S&P Global Ratings’ Credit Research
Bulletin: Fomento Economico Mexicano's Acquisition Of The Remaining 40% Stake In Socofar Is In Line With Growth Strategy
Published Jan 10, 2020
2 pages (1031 words) — Published Jan 10, 2020
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Abstract:

MEXICO CITY (S&P Global Ratings) Jan. 10, 2020--Fomento Económico Mexicano S.A.B. de C.V.'s (FEMSA; global scale: A-/Stable/--; national scale: mxAAA/Stable/mxA-1+) announced that its minority partner in Grupo Socofar has exercised its option to sell the remaining 40% stake in this entity to FEMSA. S&P Global Ratings believes this will increase FEMSA's international footprint. The all-cash transaction doesn't affect FEMSA's credit profile. We expect the company to maintain its net debt to EBITDA below 1.5x on a pro forma basis, consistent with our current issuer credit rating, given the company's strong cash position. After this transaction, FEMSA will own 100% of Socofar's shares. As of September 2019, FEMSA operated 3,130 pharmacy stores, about 40% of which are located in Mexico, 30%

  
Report Type:

Bulletin

Ticker
FEMSAUB@MM
Issuer
Fomento Economico Mexicano S. A. B. de C. V.
GICS
Soft Drinks (30201030)
Sector
Global Issuers
Country
Mexico
Region
Latin America
Format:
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MLA:
S&P Global Ratings’ Credit Research. "Bulletin: Fomento Economico Mexicano's Acquisition Of The Remaining 40% Stake In Socofar Is In Line With Growth Strategy" Jan 10, 2020. Alacra Store. May 11, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Fomento-Economico-Mexicano-s-Acquisition-Of-The-Remaining-40-Stake-In-Socofar-Is-In-Line-With-Growth-Strategy-2366484>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: Fomento Economico Mexicano's Acquisition Of The Remaining 40% Stake In Socofar Is In Line With Growth Strategy Jan 10, 2020. New York, NY: Alacra Store. Retrieved May 11, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Fomento-Economico-Mexicano-s-Acquisition-Of-The-Remaining-40-Stake-In-Socofar-Is-In-Line-With-Growth-Strategy-2366484>
  
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