San Miguel in talks with RFM regarding CBC
July 11 that it hoped to clinch a deal by next month to buy Cosmos
Bottling Corporation (CBC).
The Philippine's food and beverage company San Miguel Corp said on July 11 that it hoped to clinch a deal by next month to buy Cosmos Bottling Corporation (CBC), the soft drinks unit of rival RFM Corporation, a Philippines food and beverage company. "We still have to present the deal to the board for approval by the end of the month. There's no agreement yet," said Ramon Ang, San Miguel's vice-chairman. According to Ang, San Miguel had been talking for the past year with RFM, which owns 85 per cent of Cosmos. "This is a good move for San Miguel. This will seal their dominance in the industry. I would see Cosmos as the best fit for the missing piece in the puzzle ... They are in the best position to acquire Cosmos," said All Asia Securities research chief Helen Alvarez. San Miguel's soft drinks unit, Coca-Cola Bottlers Philippines Inc (CCBPI), said Cosmos was good for the group. "Either with San Miguel or Coca Cola Bottlers, Cosmos is a great fit," CCBPI spokesman JB Baylon said. Earlier this year, San Miguel agreed to buy back 65 per cent of Coca-Cola Bottlers from Coca-Cola Amatil through a share swap. Coca-Cola of the United States would own the remaining 35 per cent. They are scheduled to formalise their joint venture this month. RFM, which has been aggressively entertaining suitors for Cosmos, confirmed on July 11 that it was holding talks with prospective buyers of Cosmos. "RFM continues to be in discussions with potential investors in Cosmos but no agreement has been reached," RFM said in a statement to the stock exchange.
