The director of the Chilean retail chain D&S Nicolas Ibanez said late last week that his company is considering merging with department store Falabella – but only outside of Chile.

The two companies had decided in March to end their plans for a merger within Chile after Chile’s Free Competition Tribunal (TDLC) rejected their proposal. The proposed merger would have created the largest retailer in South America. Still, on Jan. 31, the TDLC ruled against the plan by a vote of 5 to 0.

Falabella and D&S had until March 13 to appeal the ruling. But they decided to let the decision stand, knowing that an appeal would be costly both in terms of time and money (ST, March 5).

Ibanez said both retailers are investigating the alternatives to go through with the merger and expand in the region.  ''We never stopped having contact and we now just have to be more creative in finding ways to work together,'' he said.

Still, Falabella isn't the only partner that D&S might opt for. According to Ibanez, company top brass are also interested in merging with the Argentine BBVA bank.

Owned by the Ibanez family, D&S operates the Lider supermarkets, among other ventures. The Solari, Cuneo and Del Rio families own Falabella. The company’s holdings include department stores, malls, a bank and a financing business, making up almost 33 percent of Chilean industry.

SOURCE: LA TERCERA

By Roxanne Klaassen editor@N0SPAM.santiagotimes.cl