Alsea Advances as Starbucks Deal Boon Seen: Mexico City Mover
Alsea climbed 2 percent to 34.98 pesos at 12:13 p.m. in Mexico City, extending its gain this week to 8.6 percent. The country’s benchmark IPC was down 0.1 percent today.
The Mexico City-based company said yesterday in a statement to the stock exchange that it acquired the 18 percent of Starbucks Argentina and 82 percent of Starbucks Chile that it didn’t already own. The company also agreed to a plan to open 130 stores in the two countries over the next five years. Alsea didn’t disclose the prices or valuations for the transactions. Credit Suisse maintained a rating equivalent to buy.
“Strategically, more control and more growth for Alsea is a positive,” Credit Suisse analyst Antonio Gonzalez wrote today in a research note to clients. The call assumes that the transactions are accretive to Alsea’s valuation, as was the case in a recent deal to bring its stake in Starbucks Mexico to 100 percent, according to the note.
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