Brazil-based Netshoes, an online sports retailer, has completed its merger with Magazine Luiza, one of the South American country’s largest retail companies.
Netshoes shareholders approved the bid of the company at US$3.70 per share.
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Founded in 2000, Netshoes is an online retailer of clothing, shoes and sporting goods with 6.8m active customers and renowned brands such as Netshoes, Zattini, and Shoestock.
Magazine Luiza said the acquisition represented a “significant step” in its exponential growth strategy, increasing the customer base, purchase frequency and marking the entrance into new, high growth categories.
Magazine Luiza had been competing with Grupo SBF for the merger with Netshoes. After an initial proposal of US$2.80, outbidding Luiza’s US$2 offer, SBF upped its offer to US$3.50, to which Magazine Luiza responded with a higher offer of US$3.70
Finally, on Thursday (13 June), SBF proposed a deal of $4.10 per share. But Netshoes, in a bourse filing, said the board would be unable to evaluate it before a shareholder vote on the transaction scheduled for the next day. Netshoes’ board subsequently reaffirmed a recommendation for a deal with Magazine Luiza.
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