Chile's Cencosud makes bid for Mexico′s Gigante
Mexico's antitrust commission has authorized Chilean retailer Cencosud to bid for Grupo Gigante, one of Mexico's four largest supermarket chains. Gigante, which runs 285 supermarkets in different formats, as well as restaurants, and has local partnerships with RadioShack Corp. and Office Depot Inc. Gigante also operates supermarkets in the US.
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A representative from Mexico's Federal Competition Commission, or CFC, said that Mexico's biggest retailer, Wal-Mart de Mexico SAB, withdrew its request for authorization to acquire all or parts of Gigante. Cencosud, however, is not Gigante's only suitor. Other Mexican companies that analysts consider to have a likely interest in some Gigante assets are retailers Comercial Mexicana SAB , Organizacion Soriana SAB and privately held Grupo Chedraui.
Gigante is still considering different strategic options including asset sales, mergers, and alliances. Gigant's financial advisors hve met with a number of domestic and foreign companies, but Gigante has not yet reached any agreements.
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