Mexican department store chain Liverpool agrees to buy Chile's Ripley

Mexican high-end department store chain Liverpool on Tuesday said it had reached an agreement to acquire Chilean retailer Ripley in a deal that values the target at 813 billion Chilean pesos ($1.2 billion).

Liverpool said has it has agreed a deal with the Calderon family, Ripley's majority owner, offering to pay 420 Chilean pesos per share for the target. The Mexican firm said it would consider the deal successful if it acquires at least 25.5 percent of Ripley.

The offer represents a premium of about 25 percent to Ripley's closing price on the Santiago Stock Exchange on Tuesday.

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The agreement is still subject to various conditions, including regulatory approval, Liverpool said in a statement to Mexico's bourse. The acquisition includes an option for Liverpool to buy additional shares five years after the deal goes through.

Ripley, which has 69 stores in Chile and Peru, was in talks with various companies last year about developing its business. Mexican press had previously reported rumors about a Liverpool acquisition.

$1 = 661.9000 Chilean pesos