US retail giant Wal-Mart today (23 January) confirmed that it has been successful in its tender offer to acquire a stake in Chile’s largest food retailer Distribucion y Servicio D&S.
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Wal-Mart will acquire a controlling stake of 58.2% of the outstanding shares in D&S.
Felipe Ibanez Scott and Nicolas Ibanez Scott will collectively retain approximately 40.1% of D&S shares, leaving around 1.7% of the company held by the public.
“Partnering with D&S, with its strong brands and its position as Chile’s largest food retailer, is an important step in implementing Wal-Mart’s international strategy,” Craig Herkert, Wal-Mart EVP and CEO of the Americas, said. “We continue to focus on portfolio optimisation, global leverage and winning in every market.”
The final results of the tender, including the actual number of shares tendered to Wal-Mart, will be published in a Notice of Results in Chile this Sunday (25 January).
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By GlobalDataD&S operates more than 180 outlets in the market, generating net revenues of US$3.8bn last year. The company runs a number of different formats including Hiper de Lider hypermarkets, Express de Lider supermarkets, Super Bodega Acuenta and Ekono convenience stores.
Commenting on the news, Enrique Ostale, CEO of D&S, said: “By combining our local retailing knowledge with Wal-Mart’s global expertise, we will create additional growth opportunities for our company and for our associates. We will also be able to deliver to our customers a broader selection, better quality and lower prices.”
