Alexandre Birman and Roberto Jatahy spoke again about a potential merger of Arezzo and Grupo Soma. Unlike what happened at the end of 2021, when Arezzo hired banks for the approach, now the conversation was eye to eye between the two businessmen and reached the companies’ board this week, Pipeline found.
The councils were surprised by an already advanced deal, which defines a transaction 100% in shares, in which the companies share governance but without the same balance in economic terms – which caused discomfort to some Soma investors, represented on the council.
The Hering family and BlackRock would have found the initial terms to be bad, Pipeline found, placing the fashion group with around 40% of the final company.
This does not mean that Arezzo will improve the terms, as there has already been alignment between the controllers on this level, sources said. However, Soma board members intend to request a fairness opinion, the report found. Pipeline.
For Jatahy, the logic would be to have a slightly smaller share of a larger group, which has shown strong growth and margin gains. The boards requested additional information about what the synergies, governance and management would be in the resulting company and have not yet deliberated.
XP acts as a deal advisor, serving both companies, according to sources.
Arezzo is worth R$6.95 billion on the stock market, considering the 10% increase this Wednesday. The Soma group is worth R$6.13 billion and also rises 15%, reflecting the progress in negotiations, revealed earlier on the Neofeed website.
The first conversations between Arezzo and Soma were revealed by Pipeline at the end of 2021. With the pandemic and other acquisitions by the footwear company, however, the business was put aside in the meantime – but Birman kept the company on the radar.