By Antonio de la Jara
SANTIAGO (Reuters) - Latin American retailers, who have yet to feel the effects of a global credit crunch, will use 2008 to consolidate investments made last year, many of them mergers and acquisitions.
Mexico's biggest retailer, Wal-Mart de Mexico (Walmex) WALMEXL.MX, will focus on organic growth while other regional players like Chile's Cencosud CEN.SN and Mexico's Soriana (SORIANAB.MX: Quote, Profile, Research, Stock Buzz) will focus on purchases made last year.
"Our business plans are based exclusively on organic (growth)," Walmex Chief Executive Eduardo Solorzano told the Reuters Latin American Investment Summit.
"We have planned through 2012, and none of our scenarios involve the possibility of an acquisition," he added. "However, if an opportunity crops up that makes economic sense for us, we'll explore it."
Soriana, Mexico's second-biggest retailer, bought 205 stores from its rival Gigante (GIGANTE.MX: Quote, Profile, Research, Stock Buzz) last year for $1.35 billion, 80 percent of which was financed through credit with banks Inbursa, Banamex and JP Morgan.
"At Soriana, we are studying the possibility of going to markets outside (Mexico)," said Aurelio Adan, Soriana's finance director. "It's not something we are thinking of doing now. Our focus for now is on Gigante."
Latin American retailers have had no trouble finding financing so far, despite turbulence in international markets.
Chile's Cencosud for example is planning a bond placement worth up to $450 million around the middle of this year. Continued...
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