Dollarama ups stake in Latin American business Dollarcity, plans expansion to Mexico

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Dollarama Inc. has increased its stake in Latin American retailer Dollarcity to 60.1 per cent with the acquisition of an additional 10 per cent interest and announced plans that will see Dollarcity expand into Mexico.

The Montreal-based company says it acquired the additional stake in exchange for 6,060,478 Dollarama common shares. The shares were worth a total of about $761.7 million based on Dollarama's share price of $125.68 on Tuesday.

"We look forward to preparing for entry in Mexico in the near term, a large and dynamic market with untapped potential in the value retail space, guided by the same careful and disciplined approach as with our successful entries in Colombia in 2017 and in Peru in 2021." "As Canadian consumers continue to seek out compelling value for their hard-earned money, we will remain focused on executing on our value and convenience promise."The stakes are high in a looming June 24 federal byelection in a long-held Liberal riding in Toronto, and if Prime Minister Justin Trudeau's party shows signs of slipping, it could spark a bigger conversation, CTV News' pollster Nik Nanos says.

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