Merger between Arezzo and Soma group should create the largest fashion group in Brazil

Merger between Arezzo and Soma group should create the largest fashion group in Brazil
Merger between Arezzo and Soma group should create the largest fashion group in Brazil
-

Arezzo will hold 56% of the new entity resulting from the merger, while Grupo Soma will hold the remaining 44%

✅ Receive news from Brasil 247 and TV 247 on the Brasil 247 channel and in the 247 community on WhatsApp.

247 – According to information obtained by NeoFeed website Along with sources close to the matter, Arezzo is about to announce a merger with Grupo Soma. The operation, which will be entirely based on the exchange of shares, is practically completed, with just a few details remaining to be made official. Although it was almost sealed on Saturday, January 27, the deal faced some disagreements, but negotiations resumed.

The CEO of Arezzo, Alexandre Birman, and the CEO of Grupo Soma, Roberto Jatahy, are directly leading the conversations. However, institutional shareholders of both companies expressed dissatisfaction with the agreement, claiming they had not been consulted about its terms. Another source indicated that Soma’s board of directors is resisting the transaction.

According to the terms discussed, Arezzo will hold 56% of the new entity resulting from the merger, while Grupo Soma will hold the remaining 44%. After the news was released by NeoFeed, Jatahy, who was in São Paulo, immediately traveled to Rio de Janeiro to speed up the negotiations. If the transaction goes through, Birman will assume the role of CEO of the holding company.

Although announced as a merger, a source informed NeoFeed that it is, in fact, the incorporation of Grupo Soma by Arezzo. Rumors about Arezzo’s interest in Grupo Soma emerged in 2021, when Birman began exploring the possibility of the business. At that time, however, Grupo Soma was valued at a higher value than Arezzo, making the operation challenging. This dynamic has recently changed, with Arezzo worth R$6.5 billion and Grupo Soma, R$5.5 billion.

CONTINUES AFTER RECOMMENDATIONS

Arezzo has previously acquired Reserva and Baw. In Grupo Soma, the controllers hold 36.31% of the shares, in accordance with an agreement between the founders of the brands, with the largest individual stake belonging to the Jatahy family. Grupo Soma’s partners include Opportunity and BlackRock, holding 6.51% and 5.33%, respectively. At Arezzo, the controllers are Anderson and Alexandre Birman, holding a 39.5% stake.

NeoFeed contacted Arezzo, but received no response. At 3:44 pm, after the publication of this article, Arezzo issued a relevant statement confirming that “the company is in agreement with Grupo Soma in which both are evaluating a possible association that could involve the unification of the shareholder bases into a single company with shared governance” , as signed by Rafael Sachete da Silva, CFO and Director of Investor Relations of the Group. A few minutes later, Grupo Soma also released a statement, signed by Gabriel Silva Lobo Leite, CFO and IR director, confirming “that there are ongoing conversations with Arezzo&Co and its reference shareholders regarding a possible association through the joining of their operations and shareholder bases, involving the shares of the respective companies and the shared governance of the combined business”. Both statements state that there is no binding document, but that the union of companies provides that Roberto Jatahy will continue to lead the brands under the management of Grupo Soma and Alexandre Birman will lead the holding company.

The article is in Portuguese

Tags: Merger Arezzo Soma group create largest fashion group Brazil

-

-

PREV Mark Zuckerberg’s apology to families of children harmed by social media
NEXT Copom: understand why the BC did not accelerate the interest rate cut and what are the messages for the future of the Selic | Economy