FEMSA in $700 Million Global Equity Offering

June 1, 2005

Cleary Gottlieb was U.S. counsel to Fomento Económico Mexicano, S.A. de C.V.  in its $700 million global offering of ADRs and common shares registered in the United States and Mexico.  The transaction featured an innovative structure that gave existing shareholders priority access to the shares offered without going through the formal procedures for preemptive rights under Mexican law.

The proceeds of the global offering will be used to repay indebtedness, including bridge loans incurred in FEMSA’s August 2004 acquisition of its 30% interest in its Mexican beer subsidiary, FEMSA Cerveza.  FEMSA is the largest Coca-Cola bottler in Latin America and the second largest beer company in Mexico.