A recent offer from the Nordstrom family, supported by the Mexican company "El Puerto de Liverpool, S.A.B. de C.V.," aims to acquire the entire Nordstrom store chain, which is a clear example of a significant move for the future of their corporation.

The Nordstrom family, descendants of founder John Nordstrom, currently owns 33.4% of the company’s common stock, however, since the beginning of 2024, they have expressed their desire to withdraw the company from the Stock Market and convert it into a private entity. To this end, they are offering shareholders $23 per share, which represents a 35% premium over the current value, resulting in a millionaire transaction costing over $1.2 billion. The intention is for Liverpool, which currently holds 9.6% of the common stock, to jointly acquire these shares with the Nordstrom family, aiming for a shareholding division of 51.1% (for the Nordstrom family) and 49.9% (for Liverpool).

In this case, the corporate governance issues- as well as the responsibilities of the Board of Directors- and the Management financial aspects, become fundamental for optimal business performance and to ensure that the transaction is beneficial for both parties. This case @opne-yellowinvolved a $250 million investment, however, regardless of the amount, the appropriate regulation of financing in operations of this nature must be supervised by specialists in the legal implications of the operation.

 This transaction represents an example of how a significant change in the ownership structure has impact in the internal operations of a corporation into a short, medium and long term. 

We will continue following up this case to understand it’s implication in Mexico and United States.

At VILA, the experience of our specialized team in Business Law is at your service four any kind of assistance for any doubt or comment.