Jerónimo Martins and Soriana : the northern expansion

• Autor(a) principal: Pimenta, Diogo de Almeida Campos
• Data de Publicação: 2019
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/29820
• topic: Acquisition; Merger; Synergies; Valuation; Retail; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

The main goal of this dissertation is to study the hypothesis of an acquisition in the retail sector, between Group Jerónimo Martins (acquirer) and Organización Soriana (target). Jerónimo Martins is an international group focused on the food distribution and specialized retail. To what the former is concerned, JMT operates in three countries – Portugal, Colombia and Poland – totaling two continents, Europe and America. The latter’s operation, on the other hand, focuses solely in the European continent through brands such as Hebe, Jeronymo and Hussel. Organización Soriana operates grocery and department retail stores representing the second largest retailer in Mexico. Yet, the firm is going through a rough period due to both its high level of debt and costs. Consequently, the operation poses as a great opportunity for any of the firms involved. By leveraging on its American’s retail market expertise obtained through its internationalization experience with Ara, Group Jerónimo Martins would be able to expand its operation to a new market strengthening its position in the American Continent. Organización Soriana could, likewise, take advantage of this operation to solidify its financial statements. The combined company would be able to, not only decrease its costs due to the reduction in the number of employees, but also through the increase in leverage over the other supply chain players resulting in an increase in bargaining power. Such synergies are valued at 1,408.90 million Euros.