Costco to buy out 50% partner in Mexican venture
6/14/12 6:17 AM ET (MarketWatch)
TEL AVIV (MarketWatch) -- Costco Wholesale Corp., the Issaquah, Wash., warehouse retailer, agreed to buy out its 50% partner in its Mexican joint venture. In a Thursday statement, Costco said it would pay $760.4 million for the 50% of Costco de Mexico held by Controladora Comercial Mexicana SA de CV. In addition, Costco de Mexico declared a cash dividend of $340.9 million, payable half to Costco Wholesale and half to CCM. Costco said it would use the dividend proceeds plus cash on hand to fund the deal. CCM said it would use its proceeds from the sale and the dividend to pay down debt. Closing is subject to clearance by Mexican antitrust regulators and by approval by CCM holders, the companies said.