Category: M&A

Chilean anti-monopoly commission (TDLC) has ruled that the country’s second-largest retail chain, Cencosud, can proceed with its acquisition of smaller supermarkets Economax and Infante, following a suspension of the deals last month. The Commission ruled that Cencosud, which operates the supermarket chains Jumbo and Santa Isabel, can proceed with its $60 million offer to buy 12 Economax stores in the metropolitan region as well finalizing a deal for $34 million to buy four Infante stores in Chile’s II Region, in the north.

Honduran Banco del País (Banpaís) has become the country’s third-largest bank following its merger with local savings and loan bank La Constancia. The merger gives the Bank a total of 250,000 accountholders, and loans worth $471 million, or 13% of total loans in the market. Banpaís was set up in Honduras in 1992. It embarked on a strategy of growth via acquisition three years ago when it took over failing Banco Sogerin and Banco de las Fuerzas Armadas, a bank owned by the military.

Brazilian Companhia Vale do Rio Doce (CVRD), the world’s largest iron-ore producer, has offered to buy Canadian nickel producer Inco for $15.3 billion in cash. The acquisition would make CVRD the world’s largest nickel miner by 2010, according to projections, and would turn it into one of the leading global mining companies. However, CVRD is facing competition for Inco from North American companies Phelps Dodge and Teck Cominco. The acquisition of Inco will be financed by loans from Credit Suisse, UBS, ABN AMRO and Banco Santander Central Hispano.

Brazil’s largest beverage company, brewer AmBev, completed its acquisition Tuesday of a further 35% stake in Argentine drinks group Quinsa to take its share in the company up to 91%. AmBev agreed in April to buy the holding from Beverage Associates Corporation (BAC) for $1.2 billion. Earlier this month the Brazilian brewer raised $949 million via the sale of local bonds to help fund the acquisition. Quinsa is the leading brewer in Argentina, Uruguay, Paraguay and Bolivia, and also has a share of the Chilean market.

Colombian food company Alpina has said it will start a push for acquisitions, both within the region and in North America, in its bid to become a Colombian multinational. It plans to raise funds via a local bond issue, although no details have been finalized. Acquisition of a US dairy, probably in California, for up to $100 million would be top of the list, followed by acquisitions in the Dominican Republic, Puerto Rico and Panama. Alpina already has operations in Ecuador and Venezuela.

Argentine high-growth, private bank Macro Bansud has received approval from Argentina’s central bank for its acquisition of Nuevo Banco Bisel, which it agreed to buy for $268 million. Macro Bansud outbid local bank Hipotecario in April for the Rosario-based bank that specializes in the agriculture sector. Banco Bisel, formerly a subsidiary of France’s Credit Agricole, was taken over by the government in the wake of the 2001 economic crisis in Argentina and Credit Agricole’s pull-out from the country.

US steel-maker Wheeling-Pittsburgh Corporation is reported to be in merger talks with Brazil’s Companhia Siderurgica Nacional (CSN). The agreement under negotiation would result in the combination of CSN’s North American assets with those of Wheeling-Pittsburgh to create a new company. Under the terms of the arrangement, CSN would contribute its steel-processing facility in Indiana and make a cash investment of $225 million through financing that would be convertible into about 11.8 million shares of the new Wheeling-Pittsburgh within a three-year period. CSN will receive a 49.5% stake in a new holding company, Wheeling-Pittsburgh Corporation, which intends to seek a listing on NASDAQ.

The food and beverages arm of Colombia’s largest conglomerate, GEA – Nacional de Chocolates – has completed the acquisition of Pozuelo, the Costa Rican cookie and juice subsidiary of Spain’s Ebro Puleva. Chocolates, together with local firm Florida Ice & Farm (Fifco) made an offer in May to pay $205 million for Pozuelo. The acquisition gives the buyers around 28% of the Costa Rican cookie market. Pozuelo distributes its products throughout Central America and the acquisition by Chocolates fits with the latter company’s strategy of consolidating its distribution base in the region.

Brazil’s largest beverage company, brewer AmBev, raised $949 million via the sale of local bonds to help fund the acquisition of a 35% stake in Argentine drinks group Quinsa from Beverage Associates Corporation (BAC) for $1.2 billion. The non-convertible debentures were issued in two series: one maturing in three years and paying annual interest of 1.75% over the local interbank (CDI) rate and the other maturing in six years and paying an annual rate of 2.5% over CDI. AmBev’s stake in the Argentine company rises to 91% as a result of the purchase.

HSBC, one of the world’s largest banks, has agreed to pay $1.77 billion for Grupo Banistmo, 2.89 times the book value of the Panamanian bank as of the end of March. The acquisition would be the largest in the region and will allow the UK bank to consolidate its position in Central America. The purchase will be carried out via a public share offering on the Panama Securities Exchange. Banistmo, Central America’s largest financial institution, has operations in Panama, Costa Rica, Honduras, Nicaragua, Colombia and El Salvador.