Brazil's Restoque begins talks with Inbrands over potential tie-up
SAO PAULO, June 2 (Reuters) - Brazil's Restoque Comércio e Confecções de Roupas SA has began talks with rival Inbrands SA over a potential tie-up, which could create a leading apparel retailer with 2.8 billion reais ($781 million) in annual combined revenue and around 730 stores.
In a securities filing, Restoque said that both companies signed on Thursday a memorandum of understanding to explore a potential merger. A two-week period for due diligence was agreed upon, the filing said, adding the combined entity would issue new shares once the deal is announced.
($1 = 3.5845 Brazilian reais) (Reporting by Tatiana Bautzer; Editing by Chris Reese)
© Thomson Reuters 2016 All rights reserved.