Organizacion Soriana has consolidated its position as one of Mexico's leading retail chains after reaching a deal to buy 160 stores from competitor Controladora Comercial Mexicana (CCM) for MXN39.19 billion (US$2.6 billion).

The deal reinforces the group's position as Mexico's second-largest retailer, after Wal-Mart de Mexico.

In a release, the group said the acquired stores were of the Comercial Mexicana, Mega, Bodega Comercial Mexicana and Alprecio formats, while the Fresko, City Market and Sumesa would be excluded.

Soriana said while negotiation process had been "intense and long", the bolt-on expansion would boost economies of scale and efficiency, leading to greater competitiveness, a better supply and ultimately a better value proposal for end consumers.

"This transaction will give CCM the opportunity to focus on business formats and market segments that currently provide a greater opportunity for growth and profitability, for which it will keep the necessary talent to operate those formats and continue offering clients a better buying experience," Soriana said.

Soriana added the move would also add to the growth of the country, trigger innovation, offer new business opportunities for suppliers, raise consumption and investment, create more buying options nationally and generate more jobs.

It clarified that the deal ensured the permanency of more than 29,000 employees at CCM.

Calculations from newspaper El Financiero estimated the deal would raise Soriana's EBITDA by 50%.

Photo: Comercial Mexicana

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