Brazilian retailer CBD and rival Casas Bahia have agreed new terms regarding their proposed merger, following months of renegotiations, according to local reports.
CBD and Casas Bahia announced the stock swap deal to create Brazil’s largest retailer in December. However, the companies had been unable to finalise the agreement.
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However, under the revised deal, the Klein family, Casas Bahia’s owners, will receive more cash annually for ceding part of their assets to the combined firm, and be allowed to exit the company in a shorter period and under better terms than originally agreed upon, Reuters reported on Friday (2 July).
It is understood CBD will invest US$387m into the unit, to be renamed Nova Casas Bahia, through the subscription of new stock.
The unit will be presided over by one member of the Klein family, owners of Casas Bahia, who will report to CBD’s board.
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