Wal-Mart Stores announced today that it purchased 58.2 percent of Chile's largest food retailer, Distribucion y Servicio D&S SA.
The acquisition gives the world's largest food retailer a foothold in the South American market. D&S posted a 2007 net income of more than $3.8 billion and operates more than 180 stores, 10 shopping centers and 85 Presto financial services branches.
Wal-Mart announced in December that it's buying the company's outstanding shares.
Felipe Ibanez Scott and Nicolas Ibanez Scott, who were D&S' controlling shareholders, will collectively retain about 40.1 percent of the company's shares, and about 1.7 percent will be 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. We continue to focus on portfolio optimization, global leverage and winning in every market," says Craig Herkert, Wal-Mart's executive VP and CEO of the Americas.
Wal-Mart already operates a procurement office in Santiago and exports Chilean products to its U.S. stores and throughout the world.
"Chile is already a growing global source for seafood, fruits and vegetables," adds Herkert. "Our investment will further strengthen Chile as a world-class supplier. Not only do we provide local suppliers additional global opportunities through Wal-Mart's global network of stores, we also have a history of collaborating with suppliers to enhance their productivity, product innovation, quality, packaging and environmental friendliness."
