Business

Cade approves the purchase of Extrafarma by Pague Menos, which will have to sell stores in 5 cities in Ceará – Samuel Quintela

Pague Menos received the green light from General Superintendence of Administrative Council for Economic Defense (SG / Cade) to complete the purchase of the Extrafarma pharmacy chain. Despite the approval, the companies entered into an agreement to preserve market competition in 5 cities in Ceará.

The acquisition should be concluded after payment of R$ 700 million, but it will have to rely on a process to sell Extrafarma stores in the cities of russes, Canindé, northern lemon tree, aracatiand Horizon In Ceara; Chapadinha and Codó in Maranhão; and Caicó in Rio Grande do Norte.

The units, according to Pague Menos, represent “less than 3% of Extrafarma’s store base”.

The divestment initiative was confirmed after reaching an Agreement on Control of Concentrations (ACC).

As a next step, the purchase process will be analyzed by CADE’s Tribunal and has until September 2, 2022 (maximum legal term) to decide “definitely on the SG’s recommendations, including the terms of the negotiated ACC”.

growth strategy

In an official statement to the market, Luiz Renato Novais, director vice president of finance and investor relations at Pague Menos, highlighted that the purchase of Extrafarma is an important step for the company’s future strategies.

“According to the material fact disclosed on May 18, 2021, the Transaction is an important milestone in accelerating the Company’s growth strategy. The Company will keep its shareholders and the market in general informed of the relevant developments related to the Transaction”, he said.

Financial data

According to a report by Cade, in 2020, Pague Menos recorded revenue of R$7.308 billion, while Extrafarma recorded R$2.106 billion in revenue.

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