Santiago, Sep. 11 - Chilean retail holding company Cencosud SA is seeking the Antitrust Court's approval to rent troubled grocer Supermercados Unimarc SA's stores, according to a document the holding company filed with the court on Tuesday.
The court recently denied Cencosud's petition to lift a ban on its acquisition of Unimarc's assets, so the holding company is now seeking to rent the grocer's 41 stores.
"The transaction submitted for court approval refers to the possible renting out of the 41 stores where Unimarc currently operates, including all the assets related to said stores," Cencosud general manager Laurence Golborne said in the filing.
Cencosud didn't specify for how long it planned to rent the stores, but said it would be a "reasonable" timeframe for it to make the operation profitable.
In 1996, the Antitrust Court issued a precautionary measure prohibiting the country's two largest grocers, Distribucion y Servicios D&S SA (DYS) and Cencosud from acquiring individual supermarkets or chains.
Cencosud argues that Unimarc's low market participation, at around 2.5%, won't hinder free competition.
According to analysts, Cencosud is the second-largest grocer, with a 31% market share. It trails D&S, which has a 34% market share.
Cencosud is one of the region's leading retailers. In Chile, it owns and operates supermarkets, department stores, shopping malls and hardware stores. In Argentina, it also owns supermarkets, malls and hardware stores and expects to open a department store in 2008.
Earlier this year, Cencosud reached an agreement with French retailer Casino Guichard Perrachon SA to introduce its Easy department store chain in Colombia.