The breakthrough agreement between bitter rivals was promptly blessed by the administration of President Joe Biden, which eased some sanctions hours later, allowing US driller Chevron Corp. On a Saturday morning in late November, a top deputy to Venezuelan President Nicolás Maduro and a leader of a group of opposition parties met at a hotel in Mexico City to announce they'd reached a deal to unlock billions of dollars in frozen funds to rebuild the country's crumbling infrastructure. Here's a Bloomberg report from December highlighting the change in tone: The Biden Administration surprised the world late in 2022 with a move to start to restore relations between the U.S. That is, its upside when Venezuela's economy reopens. That said, I'd like to draw attention to a specific angle of the Coca-Cola Femsa opportunity today. I'd refer readers back to that prior article, as it sums up the primary thesis well. This has played out well with shares up 40% since then. I previously highlighted Coca-Cola Femsa in early 2021 as a beneficiary from the coming rebound in Mexican sentiment and economic activity. While that is the case, I still like Coca-Cola Femsa, the subsidiary, for its more focused exposure to Mexican and Latin American consumer spending. I personally have become less enamored of Femsa, at the parent level, due to that firm's frequent M&A dealings which often seem to lack much strategic connection or relation to its existing businesses. FEMSA has a variety of businesses including convenience stores, gas stations, and pharmacies in addition to its 47% economic interest in Coca-Cola Femsa. FEMSA has gained appeal over the past year as a way to play the anticipated bull market in Mexican equities as that stock market finally recovers from its 2013-2021 downturn. The company is a subsidiary of Fomento Economico Mexicano ( FMX ) (commonly called FEMSA), which is a Mexican conglomerate. It also has operations in other Latin American countries such as Brazil, Colombia, and Venezuela. Coca-Cola FEMSA ( NYSE: KOF) is Mexico's largest Coca-Cola bottler.
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