Deal between one of Brazil’s largest regional food retail companies and cash-and-carry chain involved sale of properties, not stores
01/27/2023
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Makro store in São José dos Campos — Foto: Reprodução/Youtube
Grupo Muffato, one of the country’s largest regional food retail chains, has agreed to buy 16 properties and 11 gas stations from Makro, sources say. The group and the cash-and-carry chain confirmed the deal on Thursday.
In São Paulo, the properties were acquired in the neighborhoods of Butantã, Lapa, and Interlagos – stores considered among the best –, and others in the cities of Guarulhos, Marília, Piracicaba, Presidente Prudente, Santo André, São Bernardo do Campo, São José do Rio Petro, Sorocaba (two units), São José dos Campos, Taubaté, Campinas, and Mogi das Cruzes.
The transaction involved the sale of the company’s real estate, not the businesses. There are 24 Makro units in Brazil, and the company has been trying to sell all of its properties and exit the Brazilian market since at least last year, as Valor reported at the time.
Muffato had been studying the assets for months, and despite the differences in price analysis between the parties, it remained interested in some properties.
During the talks, the group was advised by XP Investimentos and law firms Marins Bertoldi Advogados and Mattos Filho Advogados. Makro Brasil received financial advice from Santander and legal advice from Mello e Torres Advogados.
Industry sources estimate the value of the deal at between R$800 million and R$1.1 billion. The company did not disclose a figure. XP reportedly helped find lines in the market to finance part of the purchase.
“The asset transfer process is expected to be completed in the shortest possible time, subject to the fulfillment of certain conditions, including the approval of CADE,” the companies said in a note, citing Brazil’s antitrust regulator.
Valor reported in December that the Dutch company had been exploring the sale of the properties through Santander, which has a mandate in the transaction.
*By Adriana Mattos — São Paulo
Source: Valor International