Cade approves merger between Casa & Video and Le Biscuit and IPO could also be on the horizon
- December 12, 2022
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Together, the two retailers have revenues of almost BRL 3 billion in 12 months and 400 physical stores
O Administrative Council for Economic Defense (Cade) approved the combination of retailer operations Home & Video Brazil and the Le Biscuit, both focusing on consumers B and C. The new combined company has revenues of almost BRL 3 billion in the last 12 months and meets 35 million customers a year in 400 physical stores and online retailers.
The expectation, now, is that the merger of the two retailers will result in an offering of shares of the new company on the stock exchange, a movement that has already been in the plans of both companies. In 2020, Le Biscuit was in the queue of IPOs, while Casa & Vídeo, in 2021, tried to raise R$ 1 billion on B3 with an initial share offering, but the two operations did not succeed.
With the acquisition of the fund, the shareholders of Casa & Vídeo will have 74.66% of Le Biscuit, while its former shareholders will hold 25.34% of the share capital. According to the autarchy, the joint participation of companies in the online retail of durable goods is below 20%, which does not outline a dominant position, which led to the approval.
According to the companies, the business combination represents an opportunity for geographic expansion and consequent increase in sales capacity. Created in 1968 in Santana, Bahia, Le Biscuit has a more relevant presence in the Northeast, while Casa & Video, born in Rio de Janeiro, has a greater presence in the Southeast.
Cade’s decision will only be final after a period of 15 days has elapsed from approval, without any appeals or recall by the autarchy’s court.