Latin American case study

HSBC helps firm become the largest drugstore chain in Latin America
The Latin American team was recently involved in advisory, financing, acquisition and foreign exchange activities when Mexican consumer products distributor Grupo Casa Saba bought the Chilean pharmacy chain FarmaciasAhumada, better known as Fasa.

This was one of the larger deals in the Mexican market and an excellent example of HSBC using our global platform. HSBC was lead adviser for the USD637 million deal, which resulted in Saba becoming the largest distributor of pharmaceutical products and the leading drugstore chain in Latin America.

Using a wider range of products
Hernan Rissola, Managing Director, Advisory, for Global Banking in Latin America, said the transaction "created a lot of visibility in the region, introduced our advisory capacity and showed we can lead a process from start to finish".

"It allowed us to cross-sell a significant amount of HSBC products, FX hedging, as well as cash management all sorts of products were involved, including USD80 million in private banking."

Becoming a partner of choice
HSBC acted as sole underwriter for the USD450 million acquisition bridge facility and follow-on term loan, and as sole foreign exchange hedge provider for the deal, which was completed at the end of September 2010.

The Casa Saba deal was one of several significant transactions HSBC has carried out in Mexico America Movil and Grupo Bimbo bond offerings among them, as well as Arca's acquisition of Ecuador Bottling Company.

Such deals have demonstrated the many advantages of working with HSBC.