Peruvian retail group InRetail Perú Corp has announced its acquisition of 100% of Makro Supermayorista, part of SHV Group, for $360 million, increasing the company’s market share in Peru’s retail segment to 12%.
The acquisition consolidates InRetail’s multi-format supermarket portfolio, and “strengthens our vision to develop a modern market of products of mass consumption,” the company’s director general Juan Carlos Vallejo said in a statement.
The purchase hands InRetail all 16 of the supermarkets Makro operates in Peru, as well as its own brand of multi-format stores.
InRetail is part of Peruvian conglomerate Intercorp, which operates in multiple sectors, including retail, banking, real estate, higher education, hospitality and tourism.
In Peru, 75% of mass consumer products are acquired through traditional channels, in a market worth some S/46 billion ($12.7 billion) annually, while the so-called ‘modern market channel’ accounts for the remaining 25%, comprising wholesalers, supermarkets and convenience stores, and which generate sales of around S/15 billion ($4.14 billion) per year.
InRetail Perú operates the Plaza Vea, Vivanda, Economax and Mass supermarket chains.
“With the incorporation of Makro into our operations, the participation of InRetail in the Peruvian market will increase from 10% to 12%,” Vallejo said.
InRetail employs 38,000 people across Peru, and the acquisition will add 2,000 employees to the company’s payroll.
SHV Group, as the seller, was advised by EY Law Peru on the tax structuring of the deal and assistance in its capital recovery plan before Peru’s national tax authority SUNAT.
EY Peru’s tax team was led by partner Fernando Tori and senior manager Edwin Sarmiento, with senior associate Indhira Meneses and associate Marjory Pérez.