MEXICAN FIRM WITHDRAWS OFFER TO ACQUIRE PRICECOSTCO’S HOLDING IN WAREHOUSE STORE
NEW YORK — Controladora Comercial Mexicana, based in Mexico City, has withdrawn its offer to buy out PriceCostco’s 50 percent interest in 10 Mexican warehouse stores.
Following the devaluation of the Mexican peso, Controladora told venture partner Price/Costco it wanted to review its $95 million offer to buy out the U.S. concern’s Mexican interest.
The two companies last December signed a letter of intent to make the deal. Because of the Mexican economic crisis, the cost of the deal in pesos would increase.
The warehouses in Mexico operate under the name Price Club Mexico.
Controladora Comercial Mexicana is a national supermarket and general merchandise chain.