Wal-Mart de Mexico, S.A.B. de C.V. (WALMEX), a Mexico-based operator of hypermarkets, apparel stores and restaurants, has acquired Walmart Centroamerica from Wal-Mart Stores, Inc. ( WMT | Quote | Chart | News | PowerRating), a US-based operator of retail stores. The transaction is valued at approximately $2,852.05 million.
Walmart Centroamerica is a Guatemala-based operator of supermarkets, discount stores and hypermarkets.
As part of the transaction, WALMEX issued 604 million shares and paid MXN1,420 million ($109.89 million) in cash to shareholders of Walmart Centroamerica as purchase consideration.
Update on December 28, 2009:
The shareholders of WALMEX have approved the proposed acquisition of Walmart Centroamerica from WMT in a cash and stock transaction.
Under the terms of the transaction, WALMEX intends to issue up to 648 million new shares to its parent company WMT and regional investors for the acquisition.
Announcement (December 8, 2009):
WALMEX has signed an agreement to acquire Walmart Centroamerica from WMT and regional investors.
WMT holds 51% stake in Walmart Centroamerica.
Under the terms of the agreement, WALMEX will make cash payments of approximately MXN1,400 million ($110.69 million) and issues 593 million new shares to the shareholders of Walmart Centroamerica as purchase consideration.
The transaction is estimated to be valued at approximately $2,700 million.
Citigroup, Inc. is acting as financial advisor to WALMEX.
Deal Value (US$ Million) 2852.05
Deal Type Acquisition
Sub-Category 100% Acquisition
Deal Status Completed: 2010-02-15
Deal Participants
Target (Company) Walmart Centroamerica
Acquirer (Company) Wal-Mart de Mexico, S.A.B. de C.V.
Vendor 1 (Company) Wal-Mart Stores, Inc.
Vendor 2 (Company) Undisclosed Vendors
Deal Rationale
The transaction will create synergies and increase the profitability of both companies. It will also expand the business and market share of WALMEX.
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