MEXICO CITY — Mexico’s Liverpool has bought Wal-Mart Stores Inc.’s struggling Mexican apparel chain Suburbia for 15.7 billion pesos, or $853 million.
The widely expected deal is subject to regular approval, Wal-Mart’s Mexican and Central American division Walmex revealed late Wednesday.
The sale, for which Walmex originally sought as much as $1.7 billion, is part of efforts to rationalize its operations and focus on its core retail business.
“The deal reached with Liverpool is good for our shareholders, customers and associates,” said Walmex’s executive president and chief executive officer Guilherme Loureiro.
Department-store chain Liverpool won a protracted bidding war against Chile’s Falabella, an unidentified investment fund and archrival Coppel, among several other interested parties, to snap up the mass-market clothing chain.
Suburbia has 117 stores and had 2015 sales of $945 million.