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Spain: Pepsi bottlers’ merger feud continues

By  |  November 7, 2016
Spain: Pepsi bottlers’ merger feud continues

PepsiCo’s Canary Islands associates have failed to come to an agreement on the process for carrying out an approved merger transaction, started in December 2015. The disagreement stems from majority partner Ahemon’s attempts to dominate the new society by designating board members with a veto over its partner, Embotelladora Canarias.

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    60% of the new Ahembo botler is controlled by Embotelladora Canarias. The merger was approved by Spanish market regulator CNMC last spring, creating a group with 390 employees and over 90 million euros in annual revenue. Of these 90 million, Embotelladora Canaria is said to provide up to 69 million in sales. The disagreement between the two former rivals has drawn interest from local authorities due to the direct and indirect effects on employment from the new group.

    The bottler’s merged network includes 17,000 points of sale around the islands. The Canary Island’s soft drinks market enjoys certain advantages, including tariff protection and other EU-approved incentives, as well as an active tourist industry.

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