Controladora Comercial Mexicana and Grupo Comercial Chedraui Closing in on $4 Billion Retail Deal
MEXICO - Controladora Comercial Mexicana (Comerci) is rumored to be closing in on a deal with Grupo Comercial Chedraui to sell the majority of its 200 retail locations for over $4 billion dollars to the rival company. While nothing has been finalized as of yet, a deal of this magnitude between Mexico's 4th-largest supermarket by market capitalization and its 3rd largest supermarket could have dramatic ramifications on the Mexican retail industry, and by extension the North American produce industry which trades heavily with it.
According to Bloomberg, sources have reported that under the current structure of the deal, Comerci would maintain ownership of the real estate and would lease it to Chedraui. Chedraui would use its own brand name on the stores it purchases.
News of this deal comes just under two months after Comerci's sale of its Restaurantes California and Beer Factory eateries to Grupo Gigante SAB for $80 million. With a price tag north of $4 billion, this new deal would easily dwarf its predecessor. Comerci is reportedly pushing Chedraui to fund the deal in cash.
Bloomberg notes that any deal of this magnitude would require regulatory approval from the Mexican government. Over the past month Comerci shares have risen 1.9%, while Chedraui’s have dropped 7%.
Neither company has as of yet issued an official statement about these negotiations.
Stay tuned to AndNowUKnow for future updates on this sale agreement and the Mexican retail industry as a whole.
