Auchan, the French retail group, has agreed to sell its five shopping centres and hypermarkets in Mexico to the local company Controladora Comercial Mexicana, which will also partner Auchan in its international buying group.
The French group announced the sale of its Mexican operations last week, although the deal will only be completed by the end of the first half of 2003. The company said that a price had been agreed for the business, although it did not disclose the sum.
The stores will remain under the Auchan fascia for the time being, although they will eventually be re-branded with one of CCM's own banners, which include Costco, Comercial Mexicana and Sumesa. The Auchan stores are in the cities of Mexico (4) and Puebla (1). CCM currently manages 214 stores in five different formats and also owns a chain of 47 restaurants.
A separate agreement between Auchan and CCM also provides for possible co-operation with Auchan's international purchasing organisation, giving it access to a much wider range of products and an increased purchasing power.
The deal is good for both parties, as it will allow CCM to pursue its investment policy in Mexico, where it is already the market leader, while at the same time letting Auchan focus on markets which are of greater importance.