Magazine Luiza buys Netshoes permanently.
The news has spread across the internet since Friday (14) when, at a meeting, 90,32% of Netshoes shareholders actually approved the sale.
In this way, Magalu won the arm wrestling that has been going on since April with the SBF group, which controls the Centauro chain of stores.
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MAGAZINE LUIZA BUYS NETSHOES
Since April 29, a clash between e-commerce giants has been taking place in Brazil.
On sale due to a severe financial crisis, Netshoes aroused the interest of Magalu and Centauro.
Firstly, during the duel, Magazine Luiza offered US$ 2 per Netshoes share.
Then Centauro increased the proposal.
However, between proposals and counter-proposals, Magalu won the fight by paying US$ 3,70 per share, much less than Centauro, which offered US$ 4,10 in its last card.
In this way, Magazine Luiza will disburse the amount of US$ 115 million for the acquisition.
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MAGAZINE LUIZA BUYS NETSHOES PAYING LESS: HOW WAS THAT POSSIBLE?
How did Magalu win the duel with Centauro paying less?
The Netshoes board of directors had committed to pay a fine of US$ 6 million if Magalu's proposal was rejected at the meeting held on Friday (14).
Furthermore, Centauro's proposal was sent at the last minute and could not be evaluated in time.
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NETSHOES FALL
Netshoes went public in 2017 with a price of US$18 per share.
However, after that the company went through periods of crisis and losses.
In the last quarter alone, for example, it lost US$ 66,9 million.
With the weakening, its controllers decided to sell it.
The price paid for Magalu, just US$ 3,70 per share, reveals the size of the gap.
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ADVANTAGES OF THE ACQUISITION FOR MAGALU
With the acquisition of Netshoes, Magalu will be able to obtain several advantages.
Among the benefits are:
- Increase in the number of customers (Netshoes has 6,8 million active customers)
- Increase in the number of online customers
- New product categories like sneakers, clothing and sporting goods
- Cheaper products than home appliances will increase the frequency of Magalu purchases
In addition, Netshoes has brands such as Shoestock and Zattini, which can be useful to Magalu's exponential growth strategy.
Finally, it is important to inform you, Magalu will control Netshoes operations as of Wednesday (19), according to a report on the EXAME website.
