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Costco set to buy out Mexican JV partner in $766m deal Thursday, 14th June 2012
Costco Wholesale Corp has revealed plans to buy out its joint venture partner Comercial Mexicana’s 50 per cent stake in its Mexican unit for USD 766.79 million.
According to a report by Reuters, this will allow Costco to take full control of its third-largest market.
Costco Mexico will pay a cash dividend of around USD 343.98 million, to be split equally between Costco and Comercial Mexicana.
Costco will use the dividend to fund the purchase, while Comerci, as it is known locally, will spent the proceeds paying down debt of USD 900 million.
The deal remains subject to approvals from the Mexican Federal Competition Commission and shareholders of Comerci.
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Posted in Deals and Takeovers Tagged costco, warehouse, comerci, mexicana, joint venture, deal, offer, shareholders, pay out, wholesale
