December 16, 2008 / 5:50 AM / 11 years ago

Mexico's Gigante sells stake in Radio Shack

MEXICO CITY, Dec 15 (Reuters) - Gigante (GIGANTE.MX), Mexico’s No. 4 retailer, said on Monday it was selling its $42.3 million (563.2 million peso) stake in U.S. consumer electronics store RadioShack Corp RSH.N.

Gigante did not specify how much it owned of RadioShack, which has a total market value of $1.4 billion.

Gigante had said in September it was considering three options: either expanding the RadioShack brand in Mexico and Latin America, buying RadioShack’s stake, or selling its share in the venture to the U.S. company.

The Mexican retail chain said on Monday it had completed negotiations to sell its stake in RadioShack, previously known as Tandy Corp.

“After analyzing the different options and the conditions they represent, we could not come to an agreement that allowed us to continue together and expand in Latin America, so Grupo Gigante decided to sell,” the company said in a statement.

According to Gigante’s website, there are more than 150 RadioShack stores in Mexico. ($1=13.3155) (Reporting by Mica Rosenberg and Tomas Sarmiento; Editing by Anshuman Daga)

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