Mexico's Soriana to Buy Gigante Stores

Mexico City Mexican retailer Organizacion Soriana SAB announced that it would buy rival Grupo Gigante's 199 stores in Mexico and seven outlets in Los Angeles for $1.35 billion.

In addition to the purchase price, Soriana will pay for inventories and rent on the locations that Gigante will lease to the company, Soriana said.

The agreement is subject to the approval of Mexico's Federal Competition Commission. If approved, it will also include 12 distribution centers, software and IT systems, the company said in a filing with the Mexican Stock Exchange.

In Mexico, the stores operate under the names Gigante, Bodega Gigante and Super G. North of the border, the stores are called Gigante USA.

Soriana, based in the northern industrial city of Monterrey, said the deal would allow it "to fully enter the competitive market" of Mexico City, where Gigante has 47 stores, and expand its floor space by 47%.