Mexico’s FEMSA (Fomento Económico Mexicano SA) has announced the completion of a deal with Chile’s Socofar which will see the Mexican giant walk away with 60% of the latter’s stock. Through the deal, FEMSA acquires the Cruz Verde drugstore chain, alongside the Maicao brand of Beauty shops, in a move worth just under a $1 bn.
Cruz Verde, one of Chile’s leading drugstore chains, has recently wrangled with a high-profile price fixing scandal, along with two other major chains.
“The company is entering a new market with a solid partner, who knows the characteristics of drug and beauty stores in the countries in which it operates” , said Alejandra Marcos, an analyst for Intercam.
FEMSA’s move into Chile is seen as a way to strengthen the company’s new Commercial branch, particularly their drug retail business, while also serving as a launchpad for further expansion into Latin America.
Source: El Financiero
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