Monterrey, Mexico - Mexico-based Coca-Cola Femsa, the largest Coke bottler in the world, agreed to buy a 51 percent stake in Coca-Cola Bottlers Philippines Inc. (CCBPI) from The Coca-Cola Co. (TCCC) of Atlanta for $689.5 million - in cash - in its first acquisition outside of Latin America.

The agreement, which is expected to close in early 2013, includes an option for Coca-Cola Femsa to buy the remaining 49 percent of the Philippines bottler within seven years of the deal closing. It will also have the "put option" to sell its ownership back to TCCC any time during year six.

The deal gives Coca-Cola Femsa access to CCBPI's 23 production plants and a nation of about 95 million people with a Coke-products consumption per capita that was 40 percent above the worldwide average last year. They will sell about 530 million cases of beverages this year, about 17 percent of Coca Cola Femsa’s volume, according to estimates.

"Femsa is buying its way into what could potentially become a completely new Southeast Asian opportunity in the long term," Antonio Gonzalez, an analyst with Credit Suisse Group AG stated. "There are very few bottlers in a position to have such serious global aspirations. Also, the Coca-Cola company's keeping a 49 percent stake is a positive as it lowers the risk for Coca-Cola Femsa."

Coco Cola is the worlds largest soft drink maker and has been produced in the Philippines since 1912. It was the first Coca-Cola bottling and distribution franchise in Asia. TCCC has owned all of the Philippines unit since buying the 65 percent stake that was owned by San Miguel Corp. for $590 million in 2007.

"This announcement reflects our long-standing belief in the global franchise system and our continued commitment to innovation and growth in the Philippines," Coca-Cola Chief Executive Officer Muhtar Kent said in the statement.

Coca-Cola Femsa spent more than $1.88 billion since the beginning of 2011 to acquire soft drink makers and adding bottling rights. It bought the Coke division of Grupo Tampico SA, the beverage unit of Grupo Fomento Queretano, and the bottling operations of Grupo Cimsa.

According to their website, 49 percent of Mexico's Coca-Cola Femsa is owned by Fomento Economico Mexicano, TCCC has a 29 percent stake, and 19 percent is owned by Bill Gates.

Coca-Cola Femsa has rights to sell drinks such as Coke, Sprite, and Fanta in parts of Argentina, Brazil, Colombia, Costa Rica, Guatemala, Nicaragua, Panama, and Venezuela. Femsa has 60 bottling facilities which serve more than 2.5 million retailers while employing more than 100,000 worldwide.