Hogan Lovells assists Mondelēz in purchase of Ricolino
Hogan Lovells has counselled Mondelēz International in the negotiation with Grupo Bimbo for the acquisition of Ricolino
Global law firm Hogan Lovells has assisted Mondelēz International in its negotiations with Grupo Bimbo and signing of an agreement to purchase confectionery business Ricolino, for a total consideration of $27 billion pesos or $1.3 billion at today’s exchange rate.
The transaction is subject to certain approvals, including several regulatory approvals, including from Mexico’s Federal Economic Competition Commission (Cofece), and is expected to close in the second half of 2022.
As a result of this transaction, Modelēz International will be able to double the size of its business in Mexico, expand its presence in the confectionery segment and enter the chocolate category in the country.
For its part, Grupo Bimbo will use the proceeds of this transaction for debt repayment, capital expenditures and other corporate purposes, and plans to invest $750 million in Mexico during 2022.
Mondelēz is a US-Mexico multinational conglomerate engaged in the confectionery, food and beverage industries. Its portfolio includes famous snack and confectionery brands such as Milka, Toblerone, Oreo, Chips Ahoy!, Tang, Trident, Chiclets and Halls.
Grupo Bimbo, founded in 1970, has 6,000 employees, operates four plants and distributes its products to various channels. Its iconic brands Ricolino, Vero, La Corona and Coronado are leaders in confectionery products.
Ricolino exports and markets its products to 17 countries, including the United States and Central America.
Hogan Lovells’ team was led by partner Juan Francisco Torres Landa Ruffo (pictured right), with support from partners Bernardo Herrerías (pictured top centre), Ricardo Pons (pictured bottom centre) and Jaime Espinosa de los Monteros (pictured top left), of counsel Andrea López de la Campa (pictured middle left) and senior associate Valentina Schmid (pictured bottom left).