Zamp, a Brazilian restaurant chain operator, is set to take over the operations of Starbucks in Brazil, following a $22.7 million (120 million reais) agreement with SouthRock, the current rights holder, as reported by Reuters.
Zamp, supported by Mubadala, the state investor of Abu Dhabi, is broadening its presence in the largest economy of Latin America. Currently overseeing Burger King and Popeyes outlets, the company is extending its portfolio in the region.
Deal Dynamics and Competitive Bidding:
The deal, which encompasses an unspecified quantity of Starbucks outlets, is subject to a competitive bidding process due to SouthRock’s ongoing bankruptcy protection.
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Zamp retains the choice to match any potentially higher offers that may arise. The finalization of the deal depends on approval from Brazil’s antitrust body, CADE, and the court overseeing SouthRock’s bankruptcy proceedings.
Strategic Implications for Zamp:
The acquisition is viewed as a strategic maneuver for Zamp, which unveiled its intentions for the Starbucks deal in February 2024.
The company has affirmed that although the precise number of Starbucks stores to be acquired remains undetermined, the agreement requires a finalized arrangement with Starbucks Corporation.
Starbucks has also recognized the ongoing discussions with Zamp regarding the direct management of its Brazilian cafes.
SouthRock, the holder of Starbucks rights in Brazil since a 2018 agreement, has also confirmed the deal.
The company remains committed to its court-supervised reorganization, aimed at restructuring and revitalizing its operations.
Starbucks Corporation had previously granted full licensing of its stores in Latin America and the Caribbean to SouthRock, a move that Zamp is now positioned to leverage, pending the successful conclusion of ongoing negotiations and regulatory approval.
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