Wal-Mart acquires major Chilean retailer
GDA Staff -- Gifts & Dec, January 23, 2009
Bentonville, Ark. and Santiago, Chile – Wal-Mart Stores, Inc. has succeeded in its tender offer to acquire control of the Chilean retail and financial services powerhouse Distribucion y Servicio, a company with about $3.8 billion in 2007 revenues.
Founded in 1957 as a family-owned operation led by Manuel Ibanez Ojeda, D&S now operates more than 180 stores, 10 shopping centers and 85 PRESTO financial services branches, as well as a real estate division, Saitec. Based in the Chilean capital of Santiago, D&S employs about 34,500. It is the largest food operator in Chile.
D&S banners include Hiper de LIDER hypermarkets, Express de LIDER supermarkets, and convenience store chains Super Bodega Acuenta and Ekono.
The Wal-Mart move obtains about 58.2% of the issued and outstanding shares of D&S, while Felipe Ibanez Scott and Nicolas Ibanez Scott will collectively retain about 40.1%. About 1.7% of D&S shares remain publicly held.
Enrique Ostale is ceo of D&S. Wal-Mart already has a global procurement office in Santiago; it comes under the supervision of Craig Herkert, Wal-Mart evp and ceo of the Americas.
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