Antitrust watchdog close to clearing sale of Starbucks Brazil

The superintendent of Cade, Brazil’s antitrust watchdog, has approved Zamp’s acquisition of the assets comprising the Starbucks coffee chain in Brazil from SouthRock, a struggling holding company that filed for bankruptcy protection in late 2023. Competitors or other Cade board members have 15 days to challenge the deal before the approval becomes final.

Zamp is a holding company that operates international food brands in Brazil, including Burger King and Popeyes. Mubadala Capital, one of the sovereign wealth funds of the government of Abu Dhabi, is a key shareholder. In early June, Zamp announced it had signed an agreement to purchase Starbucks Brazil’s assets for BRL 120 million (USD 21.6 million).

However, control over the Starbucks brand in Brazil is part of SouthRock’s bankruptcy protection process, which requires that its sale occur through a closed bidding process overseen by business courts. The agreement grants Zamp priority in the bidding, giving it the right to match offers and potentially receive compensation if it does not win.

The deal’s completion still depends on court approval and endorsement by Starbucks’s U.S. headquarters. Starbucks has around 130 stores in Brazil, with 42 located in São Paulo, according to Cade data.

SouthRock filed for bankruptcy protection in November, citing its inability to repay BRL 1.8 billion in debt after losing its rights to the Starbucks brand. Initially, Subway and Eataly, also under SouthRock’s umbrella in Brazil, were unaffected, while Starbucks, TGI Fridays, and Brazil Airport Restaurants (a chain in major airport terminals) remained in the process. 

However, in March, Subway’s representatives also sought bankruptcy protection, reporting over BRL 482 million in debt. The sale of Starbucks operations is instrumental in SouthRock’s restructuring.

The post Antitrust watchdog close to clearing sale of Starbucks Brazil appeared first on The Brazilian Report.