Brazilian malls move closer to merger

Brazilian malls move closer to merger

M&A Brazil

Brazilian mall operators Aliansce Shopping Centers and Sonae Sierra Brasil could tie the knot next month and create a company worth some $2.5bn, LatinFinance has heard.

The two companies have confirmed that they have signed a memorandum of understanding, but said they have not ironed out the terms of a merger.

"Aliansce and Sonae have been in talks for a long time, and a deal between them makes a lot of sense," said Georgia Jorge, an equity analyst at Banco do Brasil.

Aliansce operates 20 malls, while Sonae has nine. If they merge, they could challenge BR Malls, which manages 39 shopping centers in Brazil, Jorge said.

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