The creation of alliances, merges or the sale of shares of local companies to foreign companies has been a frequent practice over the last 18 years with very well-known brands passing into the hands of foreign companies. Among the most noteworthy of these companies is León Jimenes, that sold 100% of its shares to Philip Morris International in 2006 for the sum of US$427 million; the Brugal rum company sold 83% of its shares to the Edrington company from Great Britain for some US$400 million in 2008. The local ice cream leading company Helados Bon sold 73.1% of its shares to the Compañía Nacional de Chocolates from Colombia for US $38.7 million. The hallmark Presidente brand and the National Dominican Brewery (Cerveceria) was sold to Ambev in Brazil; Orange and Tricom became part of Altice; Metaldom was fused with the Brazilian company Gerdau, creating Gerdau-Metaldom, and most recently the Banco del Progreso was absorbed by Scotiabank of Canada.
According to the economist Pavel Isa Contreras, these transactions took place because these were established brands and were attractive to foreign consortiums. The distribution channels, customer recognition and their clients represented added value to remain in the market and increase distribution. According to Isa Contreras, this is why companies pay more than the face value for these different brands and represent foreign investment in the Dominican Republic.
Follow the story in Spanish:
El Dia
30 August 2018
