Mills Jumps On Loxam Sale And Likely Delisting

2026-05-26 06:12:18

(MENAFN- The Rio Times) BRAZIL · MARKETS

Key Facts

- The deal: France's Loxam is buying the 50.3% control block of Brazilian rental firm Mills at R$16 a share.

- Shares jumped: Mills stock rose around 14-15% on Monday, moving toward the offer price.

- Premium: The price is a 22% premium over Friday's close; the deal values Mills near R$3.8 billion (about US$667 million).

- Likely exit: A mandatory tender offer at the same price could take Mills off Brazil's exchange.

- Latin American impact: Another foreign buyer deepening its Brazil presence as a local firm heads toward leaving the market.

Shares in Mills jumped on Monday after the Brazilian equipment-rental company agreed to sell its control block to France's Loxam, a deal that points toward a tender offer and a likely exit from the stock exchange.

What the Mills sale involves

The controlling shareholders agreed to sell their entire stake, equal to 50.3% of the capital, to Loxam, Europe's largest equipment-rental group, according to a material-fact filing. The price is R$16 per share, a premium of about 22% over Friday's close.

The transaction values Mills at around R$3.8 billion (about US$667 million), with the control block alone worth roughly R$1.9 billion. The price will be adjusted by 70% of the local interbank rate from the 31st day after signing until closing, paid in full in cash.

Closing depends on conditions including approval by Brazil's antitrust authority. Loxam has operated in Brazil since 2015 and reported 2025 net revenue of 2.5 billion euros (about US$2.7 billion), across roughly 1,130 branches in more than 28 countries.

Why the stock rallied and what comes next

Mills shares climbed around 14% to 15% during Monday's session, moving toward the R$16 offer as the market used the deal price as a reference. Under Brazilian rules, the change of control obliges Loxam to launch a tender offer for the remaining shares at the same price.

That offer, which analysts and outlets said could result in a delisting, would be adjusted by the benchmark rate until settlement. Minority holders would be entitled to the same terms as the controlling block.

The company said the founding family viewed the sale as a way to strengthen the business and support growth in Brazil, framing Loxam as an aligned partner. It would add Mills to a list of firms leaving the exchange this year.

Frequently Asked Questions How much is Loxam paying for Mills?

R$16 per share for the 50.3% control block, a 22% premium over Friday's close. The deal values Mills at about R$3.8 billion (around US$667 million), with the control stake near R$1.9 billion.

Will Mills leave the stock exchange?

The change of control triggers a mandatory tender offer for the remaining shares at the same price, which outlets said could lead to a delisting once the deal and the offer are completed.

What still has to happen?

Closing depends on customary conditions, including approval by Brazil's antitrust authority, before Loxam formally launches the tender offer for minority shares.

Connected Coverage

This advances our earlier report on the Loxam purchase of control in Mills. It also fits a wider pattern of foreign investment in Brazil seen in our coverage of the Iberia expansion into Brazil.