Falabella Reportedly Seeks Partner or Buyer for Its Argentina Business
September 14, 2020
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Falabella S.A. (SNSE:FALABELLA) is seeking a strategic partner or buyer for its Argentina business as part of a process to reduce its presence in the country. "This is a decision that the company has planned in its long-term strategic program and the pandemic just accelerated it. It is focusing on not continuing exposure in countries with major risks," Andrea Jiménez, Associate Director at Fitch Ratings in Chile, told BNamericas. The strategy involves the sale, in part or complete, of Falabella's CMR credit card unit in the country. Potential buyers could include small banks that seek to grow by gaining access to a client database, big financial entities focused on increasing market share, and non-banking companies planning to enter the credit business. Falabella selected Columbus Merchant Banking to help find a strategic partner, according to press reports.
Falabella SA, formerly SACI Falabella, is a Chile-based company managing an online and offline retail platform. It operates seven business segments: Department Stores, Home Improvement, Supermarkets, Promotora CMR, Real Estate, Banking Business and Other Businesses. Department Stores sales, under the Falabella brand, a range of products, including retail sales of clothing, accessories and products for the home, electronics, beauty products and others. Home Improvement sales, under the Sodimac brand, building and home improvement products, including building materials, hardware, tools, and accessories for kitchen, bathroom, garden and decoration, among others. Supermarkets manages hypermarkets and supermarkets under the Tottus brand. Promotora CMR provides the CMR credit card. Real Estate operates constructing and leasing malls. Banking Business covers all banking activities. Other Businesses includes all the other activities. The Company operates in Latin America.
FALABELLA S.A. 
