SANTIAGO, Sept 18 (Reuters) - Chile’s Grupo SMU, owner of the country’s No. 3 supermarket chain, said on Sunday it had bought store chain Supermercados del Sur to increase its business in a fiercely competitive retail field.
SMU told Chile’s market regulator it would absorb Supermercados del Sur via a takeover in a deal that also includes a capital injection worth $215 million.
The companies did not disclose details of the overall value of the deal.
SMU, led by Chilean businessman Alvaro Saieh, also said it had suspended plans to register its shares with the local regulator, which had been aimed at an eventual market listing. Shareholders led by Saieh will hold an 81.3 percent stake in the newly merged company, it said.
SMU competes with Wal-Mart (WMT.N) and Cencosud CEN.SN in Chile’s supermarket sector. (Reporting by Antonio de la Jara, editing by Maureen Bavdek)