Grupo Axo resumed its acquisition processes, affected by the impact generated by the covid-19 pandemic, and will seek to license the rights to operate, manage and distribute the Old Navy brand in Mexico.

In a statement sent to the Mexican Stock Exchange (BMV), the company that represents brands of clothing, accessories and household items said that it entered into various operations with ON Stores, a subsidiary of The Gap Inc., aimed at acquire, directly or indirectly, certain assets in Mexico, as well as the execution of various contracts through which it will license the rights to operate, manage and distribute the Old Navy brand in the country.

In October, the company made an investment of 7.5 million dollars within the full-service platform for the resale and purchase of fashion items, after announcing in March that it had terminated its contract for the total acquisition of C&A stores in the country, a measure resulting from the adverse effects of the pandemic.

Last year, Axo also backed down on the purchase of Nike in Chile, Uruguay and Argentina, but in 2021 it resumed its purchase intentions.

“The consummation of the transaction is subject to common closing conditions for this type of transaction, including obtaining the approval of the Federal Economic Competition Commission (Cofece),” he said.

If the aforementioned conditions are met, Grupo Axo, directly or indirectly, will operate, manage and distribute the Old Navy brand in Mexico.

AMP