Feb 8 • 21:13 UTC 🇦🇷 Argentina Clarin (ES)

Why the sales of Carrefour, Burger King, and other companies are delayed in Argentina?

Negotiations for the sale of various companies in Argentina are facing delays due to numerous factors, including market expectations and changes in government signals.

In Argentina, significant delays are being observed in the sales of prominent companies like Carrefour and Burger King, despite ongoing negotiations that have been in progress for months. Each company's situation is unique, yet they share a common thread of protracted transaction closures, even when announcements indicated that these deals should have been finalized by now. The overarching issues stem from conditions beyond individual companies, including sector realities, business interest levels, valuation disparities, and hopes for a more stable economic environment in the future.

Key to the delays is the shift in urgency from parent companies. After lengthy deliberations on their decisions to sell, many initially rushed into these deals when under pressure from parent firms. However, recent signals from the Argentine government hinting at a potential change in economic direction have led these companies to reassess their haste. This newfound perspective allows them to stretch negotiation timelines, especially given the lower asset prices that are expected to gradually improve, enabling sellers to gain a better position.

Specific examples such as Carrefour illustrate this cautious approach, with negotiations ongoing yet fraught with hesitation. The retail sector's dynamics reveal a complex interplay of corporate strategy and external economic factors that are influencing these high-stakes negotiations. As companies like Carrefour and Burger King navigate these complexities, stakeholders will be watching closely for indications of when these transactions might finally be realized, as they could signal broader economic trends within the country.

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