Wal-Mart supermarkets in Costa Rica - Palí, Más x Menos, Hipermás and Maxi Bodega - all owned and operated by Walmart Centroamerica, the local division of Wal-Mart Stores, Inc., will soon be in the hands of Wal-Mart's Mexican operations group, Wal-Mart Mexico (Walmex), who bought 100% of the shares of the Central American group.
The transaction is reported to have cost the Mexicans us$110 million dollars in cash and would issue around 593 million new shares to compensate minority investors in the Central America retail chain who agreed to be paid in shares.
Walmex is Mexico's top retailer and Latin America’s largest retailer.
In addition to the Costa Rican stores, Walmart Central America, operates stores in Guatemala, El Salvadorl and Honduras, with a total of 519 stores in the region.
Wal-Mart Stores Inc. owns 51% of Walmart Centroamerica, with the remainder in the hands of local investors and the deal gives it control in Central America as the US company also has a majority share of Walmex. Wal-Mart Stores Inc. also owns two-thirds of Walmex.
Walmex President and Chief Executive Officer Eduardo Solorzano said the purchase will add "additional growth opportunities".
“The support of Wal-Mart Stores, Inc. to this deal is a sign of confidence in the leadership of our company, and in the value creation that this will represent for consumers in Mexico and Central America as well as Walmart de Mexico shareholders,” Solorzano said in the statement.
The Mexico City-based company will present the purchase to shareholders for approval at a Dec. 22 meeting
Wal-Mart employs approximately 9,200 workers in Costa Rica and has stores branded under the names Pali, Mas x Menos, Hipermas and MaxiBodega. Wal-Mart Central America has 519 stores and 11 distribution centers. By contrast, Wal-Mart Mexico has 1,500 store locations.
Source: www.insidecr.com