Bottler Andina absorbs Coca Cola Polar

On February 2, in Santiago, Chile, Andina Bottling signed a memorandum that includes the merger by absorption of the operations of Coca Cola Polar through a share exchange. Thus, the Andina bottler established itself as one of the largest bottlers in the region.
The agreement between the Andina and the Coca Cola Bottling Polar, which is subject to approval by relevant corporations including The Coca Cola Company, and regulatory authorities means that once that has been achieved, Polar's shareholders will control 19,68 percent stake in Andina.

The transaction strengthens the position of the Andina as one of the leading bottlers of Coca Cola in Latin America, with presence in Argentina, Brazil, Chile and Paraguay.

The new venture resulting from the merger will have a turnover of 641 million unit cases, equivalent to about 2.5 billion dollars annually, "positioning itself as one of the largest bottlers of Coca Cola in Latin America", as announced companies in the statement released on Feb. 2.

The merger will have a turnover of 641 million unit cases, equivalent to about 2.5 billion dollars annually.
The transaction will materialize through a merger and share exchange for new shares to be issued by the Andina, the rate of 0.33269 shares of Andina Serie A and 0.33269 shares of Andina Series B, for each share of Polar.
Eduardo Chadwick, President of the Board of Polaris, said in a statement: "Along with the Andina Bottling share visions and values, which allows us to plan a common future as the major bottler of Coca Cola leading the region of the Southern Cone.

He expressed that this merger creates a platform that will facilitate the integration of the Coca Cola system, capturing significant synergies and creating a regional vehicle with excellent prospects for growth.

Who is the Andina?

It is the third Latin American bottler of Coca Cola in terms of volume and one of the largest bottlers of Coca Cola in the world with annual sales of 499 million unit cases, equivalent to about 2 billion dollars in financial accounting year, which ended in September 2011.
The Andina began operations in 1946 and is present in the franchise territories of Chile, Brazil and Argentina, covering a total of 36 million inhabitants. The Andina is the largest producer of soft drinks in Chile and the second largest soft drinks manufacturer in Brazil and Argentina. The Andina is listed on the Stock Exchange and the Santiago Stock Exchange (NYSE).
Who is Polar?
Founded in 1971, Polar bottler is dedicated to the production, distribution and sale of soft drinks under license from Coca Cola.
Polar has franchises in several regions of Chile, Argentina and Paraguay, covering a total of 12 million inhabitants. In September 2011, Polar's sales in the last twelve months were 564 million dollars, with a turnover of 142 million unit cases. The company is listed on the Santiago Stock Exchange since 1992.

What does this mean for workers?
We must not forget that after every merger or acquisition by others of greater global presence, the number of workers decreased significantly. It happened in the merger of Brahma and Antarctica forming AmBev, or when the Panamco was acquired by FEMSA.

With the merger trade unions organised in Polar-Andina operations  must be prepared for this new scenario.

Please read the story in Portuguese from REL-UITA here.