The General Superintendence of the Administrative Council for Economic Defense (Cade) recommended the approval of the sale of the Extrafarma pharmacy chain to Pague Menos.
The superintendence recommended that Extrafarma sell about 3% of the network to eliminate concerns related to competition in some areas, Pague Menos said in a material fact this Monday (9).
The agreement still needs to be voted on by Cade’s court until September.
The CFO of Pague Menos, Luiz Novais, told Reuters in an interview that the closing of the deal, which will bring more than 350 stores after the sale ordered by Cade, should accelerate the expansion of the chain.
Extrafarma has almost 400 stores and should sell just over 10 to comply with Cade’s decision.
“The acquisition is equivalent to three years of organic growth,” said Novais. Pague Menos should open 120 stores this year.
Pague Menos must pay half of the R$700 million agreed with the owner of Extrafarma, Ultrapar, after approval by Cade. The remainder will be paid in two annual installments.
Pague Menos will not need to issue debt or shares for the payment, which must be carried out with cash, Novais said.
Source: CNN Brasil
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