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National pension plan invests in U.S. dollar stores

Published by Steve Coleman on October 11, 2011

The Canada Pension Plan Investment Board is buying American.

The investment branch behind the national pension plan announced Oct. 11 that it was spending $1.6 billion in a partnership with a U.S. merchant bank to buy the 99 Cent Only chain of discount stores.

CPP got involved in the deal with the help of New York-based Ares Management to buy the 289-store chain in California, Texas, Arizona and Nevada.

As a part of the agreement, the partnership announced it was paying $22 US for every 99 Cent Only share. One report said the deal was a 32 per cent premium on the chain's Oct. 7 closing share values on the NYSE.

The CPPIB invests the funds the Canada Pension Plan doesn't need to pay current benefits on behalf of 17 million Canadian contributors and beneficiaries. The fund had $153.2 billion in assets at the end of June.

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