Mexico's Coca-Cola FEMSA said it reached an agreement to acquire 100 percent of Brazil's Spaipa in a deal worth $1.85 billion.

The acquisition, which has been given the green light by the board of directors, is subject to regulatory approval in Brazil, Coca-Cola FEMSA, considered the world's largest independent bottler of Coca-Cola products in terms of sales volume, said.

"Coca-Cola FEMSA will also seek the approval of The Coca-Cola Company for this transaction," the Mexican company said in a statement.

Spaipa, the second-largest privately held Coca-Cola system bottler in Brazil, sold 233.3 million cases of beverages, including beer, in the 12 months ended June 30.

"Spaipa's territory creates a perfect geographic link between the operations of Coca-Cola FEMSA in Mato Grosso do Sul state and the state of Sao Paulo. This transaction will increase our volume in Brazil by about 40 percent, allowing us to reach 39 percent of the volume of the Coca-Cola system in that country," Coca-Cola FEMSA said.

Coca-Cola FEMSA is a unit of Fomento Economico Mexicano, a conglomerate that also owns FEMSA Comercio, the operator of more than 10,600 OXXO convenience stores, FEMSA Empaques and FEMSA Logistica.

FEMSA has a 20 percent stake in Dutch brewing giant Heineken Group. EFE