RFM's Cosmos valued at $281.4m

Philippine soft drink maker Cosmos Bottling Corp has been valued at $281.4m in a deal under which it will be sold to San Miguel Corp and the Coca Cola Co, told Ramon Lopez, spokesperson for Cosmos' parent company RFM, to Reuters. RFM owns about 83 per cent of the company and is selling its entire stake to the San Miguel/Coca Cola joint venture, Coca-Cola Bottlers Philippines Inc (CCBPI). San Miguel owns 65 per cent of CCBPI and Coke the remaining 35 per cent. A memorandum of understanding on the deal is to be signed later on August 6. The acquisition of Cosmos, the Philippines' second largest soft drink firm with 20-25 per cent share of the annual $1 billion local market, would give Coke a virtual monopoly of the Philippines' soft drink market. Coke already controls some 60-65 per cent of the market. San Miguel, through its joint venture with Coke, edged out PepsiCo Inc in a bidding war for Cosmos by reaching an agreement in principle with RFM in July.