ISSAQUAH, WA and MEXICO CITY — Costco Wholesale Corporation (NASDAQ: COST) ("Costco Wholesale") and Controladora Comercial Mexicana, S.A.B. de C.V. ("CCM") are pleased to announce that they have executed a definitive agreement under which wholly-owned subsidiaries of Costco Wholesale will purchase from CCM its 50% share interest in Costco de México, S.A. de C.V. ("Costco México"), a joint venture, for $10,650 million MXN (the equivalent amount in U.S. dollars is $760.4 million based on an exchange rate of 14.006 pesos to the dollar). In addition, Costco Mexico has declared a cash dividend of approximately $4,774 million MXN (the equivalent amount in U.S. dollars is $340.85 million based on an exchange rate of 14.006 pesos to the dollar), 50% payable to a subsidiary of Costco Wholesale and 50% to CCM. Costco Wholesale will use the dividend proceeds and existing cash and investment balances to fund the purchase. CCM will use the dividend and sale proceeds to pay down debt.
The Costco México joint venture has been 50% owned by each of Costco Wholesale and CCM and operated by Costco Wholesale. The closing is subject to the approvals of the Mexican Federal Competition Commission and the shareholders of CCM. Mr. Guillermo González Nova, and Mr. Carlos González Zabalegui, respectively Chairman and CEO of CCM, will continue as members of the Board of Directors of Costco México. Mr. Jaime Gonzalez Solana will continue as CEO of Costco México.
Costco Wholesale currently operates 602 warehouses, including 435 in the United States and Puerto Rico, 82 in Canada, 32 in Mexico, 22 in the United Kingdom, 13 in Japan, eight in Taiwan, seven in Korea and three in Australia. The Company also operates Costco Online, an electronic commerce web site, at www.costco.com and at www.costco.ca in Canada. The Company plans to open up to an additional six new warehouses prior to the end of its fiscal year on September 2, 2012.
A brief conference call to discuss the transaction is scheduled for 8:00 a.m. (PT) on June 14, 2012, and is available at 800-399-8203 or via a webcast on www.costco.com (click on Investor Relations and "Play Webcast").
Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For these purposes, forward-looking statements are statements that address activities, events, conditions or developments that the Company expects or anticipates may occur in the future. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. These risks and uncertainties include, but are not limited to, domestic and international economic conditions, including exchange rates, the effects of competition and regulation, uncertainties in the financial markets, consumer and small business spending patterns and debt levels, conditions affecting the acquisition, development, ownership or use of real estate, actions of vendors, rising costs associated with employees (including health care costs), energy, and certain commodities, geopolitical conditions and other risks identified from time to time in the Company's public statements and reports filed with the Securities and Exchange Commission.
© Marketwire 2012
South Korea's Lotte Shopping abandons plan to start cash-and-carry venture in India - Economic Times
The retailer, one of Asia's largest with a presence from Russia and China to Vietnam and Indonesia, reckons high property prices and the complex nature of the business make wholesale retailing an unviable proposition in India, a person with direct knowledge of the development said.
The person added that Lotte Shopping had registered Lotte Cash and Carry India Pvt. Ltd with the idea of following in the footsteps of the world's top retailers, including Walmart Stores Inc of the United States and France's Carrefour SA.
Frustrated after waiting for years for India to open up its highly regulated multi-brand retailing for overseas investments, Walmart and Carrefour have rolled out cash-and-carry stores, which sell their wares to other retailers and businesses. Foreign retailers are allowed to own 100% local subsidiaries in wholesale retailing ventures.
Lotte had put together an eight-member team of business development executives, half of them Korean nationals and half Indians. The team began surveying the cash-and-carry model and scouting around for properties in various cities including Mumbai and Pune. Within four months the team concluded that cash-and-carry was a tough model to turn profitable in the country, prompting them to abort the proposed venture, said the person quoted above.
Now, Lotte Shopping has shelved its India plans and its team of Korean executives have either left the country or are in the process of leaving India bag-and-baggage, the person said. The Indian executives barring one have also left. The MD of the company Jin K Kim has also returned to South Korea.
A Lotte Shopping spokesman in Korea said the retailer's executives constantly travel to India to assess the investment climate there. The spokesperson said the company is "still trying" and "waiting for a chance" to open stores in India without specifying when. "We still have two corporate bodies'' in India, he said.
Lotte Shopping had closed its New Delhi office two years ago even as it maintained an office in Mumbai. The person aware of the development said Lotte saw little potential to open its supermarkets or departments stores catering to the burgeoning middle class in India as there are vociferous political opponents against liberalizing the country's retail sector for foreign supermarket operators.
The political standoff in India stems from the fear that allowing foreign supermarket chains in a sensitive sector would drive many of the estimated 12 million small shopkeepers out of business.
Around six years ago, Lotte Shopping had opened a liaison office in New Delhi's Kasturba Gandhi Marg to study the country's retail market and was talking to potential Indian partners even as Lotte's real estate unit was exploring possibility of entering the country's booming property market by building townships in Greater Noida or Gurgaon.
Now, even the real estate representative has left India, according to a former Lotte Shopping employee requesting anonymity. He says Lotte now plans to focus on its retail businesses in China and Indonesia instead.
Retail therapy! Kendall and Kylie Jenner splurge their hard earned cash at a Beverly Hills boutique - Daily Mail
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Kendall and Kylie Jenner broke free from their famous clan today to go on a big Beverly Hills shopping trip.
Toting tons of blue shopping bags, the model sisters skipped merrily down the street.
They had spent about an hour at Kitson's, a Beverly Hills boutique.
High heeled: Kendall and Kylie Jenner broke off from the rest of their family today for some quick retail therapy
No time to dally: Kendall seemed to be in a hurry to get home
The girls have a good reason to be happy - they finished their high school exams last week and have the entire summer off.
Kendall, 16, and her 14-year-old sister were having lunch with big sister Kim Kardashian and brother, Rob, earlier in the day.
It was 31-year-old Kim who spilled the beans about their luncheon date when she tweeted a photo of them gathered around a buffet table.
Skinnies: Both girl slipped into some skinny jeans for the outing
Front and centre: Kim tweeted this photo today of her with siblings Kylie and Rob
Sisterly love: Kylie and Kim posed for a cute Instagram shot together
Kylie was wearing the same opaque yellow shirt at lunch as she was while shopping.
While Kendall and Kylie will be featured this Sunday on an Oprah segment about the Kardashian family, it's Kim who is expected to be the center of the talk show queen's interview.
Kendall, who quickly becoming a hit in the modeling world, wore towering blue high heeled shoes today that made her look as tall as a professional basketball player.
Little fashionista: Kendall sipped on a Starbucks drink as she perused the boutiques
While both sisters have the summer off, they won't be playing video games and watching television.
As the youngest girls in the hard-working family - their father is Olympian Bruce Jenner - they'll be expected to make appearances for the family businesses, including the Kardashian Khaos store in Las Vegas.
Stylish mother: Kris Jenner arrived with her husband Bruce at her daughter Kim's house during the day
Mariners make wholesale roster changes - YAHOO!
Seattle Mariners Should Become Sellers Before …
After losing four straight games to the Los Angeles Angels at home, it appears as Full Story »Seattle Mariners Should Become Sellers Before All-Star Break: A Fan's Take
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