MILAN (Dow Jones)--Gruppo Coin SpA (GCN.MI) has agreed to buy smaller competitor Upim, a deal that would create Italy's biggest department store chain, a source familiar with the agreement said Thursday.
Speaking on condition of anonymity, the person confirmed newspaper reports published earlier in the day that valued the deal at more than EUR1 billion.
Under the terms of the deal, Upim's shareholders--Investitori Associati, Deutsche Bank Real Estate Opportunities Group, Pirelli & Co. Real Estate SpA (PRS.MI) and Gruppo Borletti--and its creditors--Unicredit SpA (UCG.MI) and Natixis (KN.FR)--will get a 7.5% stake in Coin, according to one newspaper, La Repubblica.
