Costco to Buy Out Mexican Venture Partner
Costco has reached an agreement with Controladora Comercial Mexicana (CCM), its partner in Costco de Mexico, to acquire CCM's 50 percent interest in the Mexican operations.
A Costco statement put the purchase price at $760.4 million. In addition, Costco de Mexico has declared a cash dividend of about $340.85 million, 50 percent payable to Costco and 50 percent to CCM. Costco will use its dividend proceeds to fund the purchase, while CCM will use its share of the dividend to pay down debt.
Jaime Gonzalez Solana will continue in his current post as CEO of Costco de Mexico, the statement said. Also, Guillermo Gonzalez Nova and Carlos Gonzalez Zabalegui, respectively CCM's chairman and CEO, will continue as members of Costco de Mexico's board.
The closing of the deal is subject to the approvals of the Mexican Federal Competition Commission and CCM's shareholders.