Mubadala backed-Zamp Acquires Starbucks Brazil Rights For $22.7 Million
In a strategic move that marks a significant shift in the Brazilian coffee market landscape, Zamp, the entity operating Burger King and Popeyes outlets in Brazil, has announced its acquisition of the Starbucks brand within the country. This acquisition, facilitated by a deal worth $22.7 million, was made public through a notice to Brazil's stock exchange on Thursday, Reuters reported.
The agreement was reached with the SouthRock Group, currently navigating through bankruptcy, to purchase specific assets and rights affiliated with the Starbucks brand. The announcement of this acquisition led to a notable surge in Zamp's share price, which climbed by 10.2 percent at the close of trading in São Paulo.
Based in Brazil, Zamp is supported by the Abu Dhabi sovereign fund, Mubadala, showcasing the global investment firm's expanding footprint in the South American nation. The transaction, however, is not finalized yet. It awaits the green light from Brazil's competition authority and the bankruptcy court before it can be completed. Adding an additional layer of complexity, the deal includes a clause that allows Zamp the opportunity to match any higher offers from competing bidders, although the exact number of Starbucks outlets involved in the acquisition has not been disclosed.
Mubadala Capital, a fully owned subsidiary of Mubadala Investment Company, which has a 38.5 percent stake in Zamp as disclosed in February, has been active in Brazil. Since 2012, Mubadala Capital Brazil has invested more than $5 billion across various sectors in the country. This move to acquire the Starbucks brand further cements Mubadala's investment strategy in Brazil, showcasing a robust confidence in the Brazilian market's potential for growth.
This acquisition by Zamp, backed by Mubadala's substantial financial and strategic support, could potentially alter the dynamics of Brazil's coffee industry, introducing new challenges and opportunities for local and international players alike. As the transaction awaits approval, the focus will be on how this deal might influence the competitive landscape in one of the world's most vibrant coffee markets.
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