(Updates with share swap terms in second paragraph.)
Feb. 2 (Bloomberg) -- Embotelladora Andina SA, Chile’s largest Coca-Cola bottler, will take over rival Embotelladora Coca-Cola Polar SA in an all-stock transaction agreed to by the two companies’ controllers.
Andina will swap 0.33 new share for each existing Coca-Cola Polar share, giving the latter’s shareholders 20 percent of the combined company, under a memorandum of understanding signed by the controllers, according to a statement posted on the securities regulator’s website.
The transaction would create one of Latin America’s biggest Coca-Cola bottlers, with operations in Argentina, Brazil, Chile and Paraguay and sales of $2.56 billion, according to the statement.
The two companies’ controllers are scheduled to sign a merger contract by March 15, they said in the statement. The transaction is subject to regulatory approval.
--With assistance from James Attwood in Santiago. Editors: James Attwood, Glenn Kalinoski
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