Brazil-based Aliansce Shopping Centers SA responded to a March 21 report from Valor Pro that the company is close to a business combination deal with local peer Sonae Sierra Brasil SA.

Aliansce said its controlling shareholders, including Canada Pension Plan Investment Board, have only signed nonbinding term of understandings comprising preliminary agreements with the controlling shareholders of Sonae Sierra.

Aliansce added that the agreements do not include the selection of executives who will become part the management of the merged company, and that the definitive terms of the deal are still under negotiations and formalization.

The company further noted in a release that it is not in talks with Brazilian shopping centers operator Almeida Junior Shopping Centers SA.