Brazilian Textile and Apparel Industry Association (ABIT) stated that Brazilian group Camargo Corrêa, which controls Santista Textiles, has opted for merging the Brazilian denim manufacturer with the Spanish Tavex Algodonera, thus creating the biggest jeans textiles manufacturer in the world.
With a revenue of around R$ 1.4 billion, the new company will retain between 10% and 15% of the world denim market. It outruns the American International Textile Group. The company derived from the merger will be controlled by Camargo Corrêa, with 59% of shares.
Camargo Corrêa group follows the same path taken by Coteminas, who last October has announced a fusion with the American Springs. The result of this union, consolidated in January, is a leader company on bed, bath and table linens, with 7% of the world´s production.
The fusion will allow Santista Têxtil to be closer to the consumer markets, spreading costs and increasing the bargaining power with suppliers. With factories in Brazil, Argentina and Chile, Santista Têxtil had been seeking a cheaper access to the American market.
It had actually planned to start this year the building of a new unit in Central America. Now, following the union with Tavex, the access door to the United States consumer will come about through Mexico, where the Spanish owns a factory. Besides, the entrance in Europe will happen through premises in Morocco and in Spain. Thus, Brazil, Chile and Argentina would keep supplying South America.