Is Consolidation On The Up In Chile's Retail Sector?

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Chile's fourth largest department store chain Empresas La Polar has agreed to study a merger proposal from Omega, the parent company of supermarket chain Supermercados del Sur. Omega's backers have proposed an all share merger that would give La Polar's owners 62% of the merged entity, but give Omega 'a decisive influence' in running the enlarged company. The deal, which puts a value on La Polar 38% higher than its closing price before the announcement, would create a diversified retailer that is likely to be better able to compete in a consolidating