Soriana to Open Home Improvement Stores in Mexico Eduardo Thomson - Bloomberg
go to original April 16, 2016

SACI Falabella, Latin America’s most valuable retailer after Wal-Mart de Mexico SAB, agreed to open home-improvement stores in Mexico in a joint venture with Organizacion Soriana SAB. Shares in Soriana rallied.

The two companies will invest $600 million USD to open 20 Sodimac stores over five years, according to a filing on Friday on the website of Chile’s securities regulator. Santiago-based Falabella will offer its CMR credit card through the venture with Monterrey-based Soriana, Mexico’s second-largest grocer. They expect to sign definitive contracts within three months.

Mexico becomes Falabella’s seventh market in Latin America, where the company also operates department stores, supermarkets and malls. It has been using its Sodimac brand to spearhead its most recent expansion and profit from a growing middle class in the region.

Soriana rose as much as 6.1 percent in Mexico City, extending gains after the announcement, which was made after close of regular trading in Santiago. Soriana has 682 stores throughout Mexico with 3.2 million square meters of sales space, according to its website. The company’s shares have traded on the nation’s stock market since 1987.

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