Wal-Mart to Enter Chile

By Tom Parsons

LITTLE ROCK, Ark. -- Wal-Mart Stores(WMT) announced Friday an effort to enter another Latin American market, with an offer to buy all shares of the Distribucion y Servicio chain of supermarkets in Chile.

Wal-Mart, the world's largest retailer, said it has the support of the controlling shareholders of D&S, the Ibanez family, which has agreed to sell a portion of its D&S shares.

"These controlling shareholders will enter into a long-term stockholders' agreement with Wal-Mart regarding D&S, which will continue to operate with its existing leadership, associates and brands," Wal-Mart said in a news release.

The retail giant said it would begin Tuesday offering to pay 40.8 cents a share for D&S stock, a price Wal-Mart said represented a premium of about 37.4% over the stock's average closing price for the past 30 trading days.

Wal-Mart spokesman Kevin Gardner said from the company's headquarters at Bentonville, Ark., that D&S operates 185 stores in Chile and is a "significant" player in the country's grocery-retail sector.

"Moving into Chile is an important step in implementing Wal-Mart International's strategy. We continue to focus on portfolio optimization, global leverage and winning in every market," said Wal-Mart vice chairman Michael T. Duke. "A successful tender offer will give Wal-Mart the opportunity to be a significant participant in Chile, which continues to have a strong and growing economy among South American countries."

In Latin America, Wal-Mart already operates in Argentina, Brazil, Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua and Puerto Rico.