Moody's: Coca-Cola Femsa deal raises risks

Moody's Investors Service said news that Coca-Cola Femsa, SAB de CV has entered into a 12-month exclusivity agreement with the Coca-Cola Co. to evaluate the potential acquisition of a controlling ownership of its bottling operations in the Philippines raises event risk for the Mexican-based bottler.

The agreement does not require either party to enter into a transaction, so there are no assurances that a definitive agreement will be executed, Moody's said.

An Asian transaction would be the first time Coca-Cola Femsa would venture outside Latin America and could pose significant challenges given its lack of geographic proximity, the agency said.

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