Photo: David Boté Estrada/Flickr
Retailer nears $2.1-billion deal to buy Comercial Mexicana
Mexican retailer Organización Soriana is set to begin 2016 with a bang after launching a $2.1-billion offer to buy rival firm Comercial Mexicana, in a deal expected to conclude next month.
Soriana is Mexico’s sixth-largest retailer (second-largest supermarket chain) and 14th in Latin America, according to Latin Trade’s most recent Top 50 Retail Companies ranking. For its part, Comercial Mexicana is at number 10 for Mexico and 28th in the region. The merger will probably place the combined company as the 10th largest retailer in Latin America, after Walmart Brazil.
The acquisition deal was first announced in January this year, and began with Soriana’s purchase of 160 Comercial Mexicana stores.
So far Soriana has had a positive year, having reported a 9.4 percent increase in sales in the third-quarter, compared with the same period in 2014. while its EBIDTA advanced 2.4 percent in the period.
In the Top 50 Retailers ranking, Soriana reported $6.9 billion in revenues and $251 million in profits in 2014, while Comercial Mexicana reported $3.2 billion in revenues and $145 million in profits.
In September, Fitch rated Soriana with a ‘BBB’ and a stable outlook, based on the company’s position as Mexico’s second-largest supermart chain, a broad customer base supported by a number of store formats and its loyalty program. In its report. the ratings firm said the acquisition will …
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