Brazilian restaurant group Zamp has agreed to purchase the rights to operate the Starbucks brand and some stores in the South American country.

In a filing, Zamp said that the deal is worth BRL 120 million (approx. $22.7 million) and was signed with SouthRock, which owns the rights and assets of Starbucks in Brazil and has been under bankruptcy protection since last year.

The news caused Zamp's shares to soar, with a peak increase of 19.4% before closing with a nearly 10.2% gain, according to Reuters.

Zamp has not specified how many of Brazil's more than 100 Starbucks stores it will acquire. The transaction will be conducted through a competitive process as part of SouthRock's bankruptcy proceedings, allowing Zamp the right to match any higher bids.

The deal requires approval from Brazil's antitrust authority, CADE, and the court overseeing SouthRock's bankruptcy.

Zamp said that the completion of the transaction depends on several conditions, such as obtaining judicial approval within the framework of SouthRock's bankruptcy proceedings.

Additionally, the operation needs to be approved by Brazil's antitrust authority, CADE, and definitive contracts with Starbucks Corporation must be finalised. These conditions are typical for transactions of this kind.

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