STRATEGIC ALLIANCES

Hello teacher, my name is Andrea Carrillo from section 2T, in this occasion I’m training
strategies alliances. First at all, a question arises, which is: Why Mexico? Because, in Mexico
that acquisition is a further step forward for the business in that region. Over the past few
years the business in Mexico has delivered substantial growth in volume and earnings
driven by strong customer relationships and the conversion from glass to PET of a
number of hot fill beverages. Also, I want to add some information about Arca, arca is
the second largest Coca Cola bottling franchise in Mexico and was formed in 2001
through the merger of three of the oldest bottling companies in Mexico.

THE BENEFITS OF THE DEAL

Now, do you want to know the benefits of the deal? I think you want to know, they make
a strategic supply agreement in which the principal benefit is that Amcor purchased the
PET on site injection and blow molding assets of Arca for around 60$ million. That will
make arca grows potentially.

WHY DID ARCA SELL ASSETS TO AMCOR?