SAO PAULO (Reuters) - Shares in Brazil’s sports goods chain Centauro (CNTO3.SA) rose more than 10% in mid-morning trading in Sao Paulo after the announcement of a $212 million deal to take over Nike operations in the country.
Grupo SBF, Centauro’s formal name, will have exclusivity in distributing Nike products in Brazil. The deal still needs to be approved by Brazilian antitrust watchdog CADE, SBF said in a statement. Centauro operates around 200 stores in Brazil and will add 24 Nike stores.
Nike’s business in Argentina, Chile and Uruguay will be acquired by Mexico’s Grupo Axo, which operates 800 stores and owns Promoda, an off-price retailer, and Privalia, a multibrand e-commerce platform.
Centauro said it will pay 900 million reais ($212 million) for the business in Brazil. Nike did not disclose the value of each deal, but said it would take a one-time charge of $425 million at closure of both deals in Latin America.
Reporting by Tatiana Bautzer; editing by Jason Neely and Steve Orlofsky