Mexico's Soriana to Buy Stores From Comercial Mexicana

MEXICO CITY--Mexican retailer Organizacion Soriana reached an agreement to buy 160 stores from Controladora Comercial Mexicana for 39 billion pesos ($2.6 billion), bolstering its position as the country's second-largest retail chain behind Wal-Mart de Mexico.

In a release late Wednesday, Soriana said the agreement includes the acquisition of 118 fully owned stores and the lease for 42 others from a third party. The deal also includes inventory, three distribution centers and other assets.

Comercial Mexicana will spin off the assets to be kept, and Soriana will buy the rest via a purchase offer on the Mexican stock exchange.

Soriana said the acquisition, which requires regulatory and other approvals, is expected to increase its annual sales by about 37% and raise its floor space by a third.

Comercial Mexicana will continue to operate about 40 stores, including its upscale formats Fresko and City Market.

Write to Anthony Harrup at [e-mail]

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