January 1, 2011
After an initial agreement had been hurriedly signed, Bahia promptly pulled out. It was up to law firm Pinheiro Neto to get Bahia back in. The transaction successfully closed in November 2010, says managing partner Alexandre Bertoldi, who worked on it.
One of the major successes of the renegotiated deal, Bertoldi tells LatinFinance, was the change in leasing terms. "The renegotiation helped Casas Bahia achieve a gain of about $1 billion in lease proceeds over the life of the lease," he explains. Not only did his client get a better deal for the lease of its real estate, the term was also increased to 10 years from three.
As part of the agreement, Bahia will be incorporated into Pão
The merger of Brazil’s two largest retailers – Casas Bahia and Globex, a unit of Pão de Açúcar – was no easy task.