Chilean Retailers D&S, Falabella Announce Merger

Chilean retailers – D&S and Falabella – have announced their merger, confirming rumors that have been swirling around the market for some time. Upon completion, the shares of D&S will be exchanged for 23% of the shares in the new company; while the shares issued by Falabella will be exchanged for 77% of all the new shares. The merger will create the largest retailer in the market, overtaking market leader Cencosud, with projected sales of $7.8bn against around $6bn by the current market leader. The new entity will also become the second-largest retailer in the region, after Mexican firm Walmex, which recorded turnover last year of $18bn.