Gigante Clinches Office Depot Buy

Grupo Gigante has agreed to buy the remaining 50% of Office Depot Mexico it does not own from Office Depot for MXP8.77bn ($691m), it says. The buyer has arranged a 1-year bridge loan through BBVA and Credit Suisse, according to market sources, and would likely eventually turn to the bond market to replace it. The cash deal comes after the offer Gigante made in February at the same price, and is the conclusion of a strategic process that had also contemplated an IPO for the joint venture formed in 1994. The deal is subject to regulatory approval, and is expected to close within 30 days. Bank of America Merrill Lynch advised Office Depot. Gigante did not respond to a request for comment on the transaction.