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Report: CVS eyes purchase of Brazil drug chain
December 7th, 2012
SAO PAULO, Brazil – CVS Caremark Corp. reportedly is mulling a move to go international.
The Woonsocket, R.I.-based drug chain and pharmacy benefit manager is in advanced talks to acquire a controlling interest in Onofre, a chain drug operator in Brazil, the newspaper Valor Economico reported Friday.
If a deal is struck, CVS Caremark would pay 650 million Brazilian reals ($313 million U.S.) to purchase an 80% stake in Onofre and take on the company's debt, according to the report.
A CVS Caremark spokesman declined to comment on the Valor Economico report. Onofre officials weren't immediately available for comment.
Onofre is the eighth-largest drug store chain in Brazil in terms of revenue. It has 44 stores in Sao Paulo, Rio de Janeiro, Minas Gerais, Espirito Santo and Rio Grande do Sul states.
The drug chain is controlled by the Arede family, which would continue to be part of the company's management if an agreement is reached, according to Valor Economico.