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Carrefour buys Brazilian chain Big from Walmart and Advent International

2021-03-24T14:19:32.400Z


The French group will pay about 1,100 million euros between cash and shares to expand its presence in the country


Carrefour logo in a supermarket in São Paulo (Brazil) Nacho Doce / Reuters

Carrefour expands its presence in Brazil.

The Carrefour Brasil Group has agreed with Advent International and Walmart to purchase Grupo Big, the third largest food retailer in the country.

The supermarket chain values ​​the operation at 7,000 million Brazilian reais (about 1,075 million euros at the current exchange rate), as reported by Carrefour this Wednesday in a statement.

  • Carrefour completes the purchase of the 172 Supersol stores

With this acquisition, the French chain reinforces its presence in the country where it expects significant growth potential, the note says.

"It will allow Carrefour Brasil to offer Brazilian consumers a wider range of products and services at more competitive prices," he stresses.

According to the firm, the acquisition offers significant synergies from the first year.

And it will have a net contribution to Ebitda - profits before taxes - of 1,700 million reais (about 260 million euros) three years after the closing of the purchase.

The two groups add up to revenues in the country of approximately R $ 100 billion (just over € 15.3 billion), with 876 stores and employing about 137,000 people.

Carrefour has been operating in the country since 1975, supplies the Atacadão supermarkets and is the largest retailer in Brazil.

With this operation, it takes over the third largest retailer.

"The acquisition of Grupo Big is a major transformation move for Carrefour Brazil and further strengthens our leadership," Carrefour President and CEO Alexandre Bompard explained in a statement.

With the acquisition, Carrefour Brasil will also operate in a new market segment with the Sam's Club format, through a license agreement with Walmart.

This model is based on a membership system and has two million members.

The payment is divided into 70% of the total in cash and the remaining 30% in shares of Carrefour's subsidiary in Brazil.

In this way, it will reduce its controlling stake from the current 71.6% to 67.7%.

The operation is pending the approval of the Brazilian competition authorities and the approval of the shareholders of Carrefour Brasil, as well as the usual conditions for this type of corporate operation.

The acquisition is scheduled to close in 2022.

In this way, the French supermarket chain continues with its strategy, despite the coronavirus crisis.

In recent weeks, for example, it has already completed the purchase of the 172 Supersol stores in Spain after authorization from the competition authorities.

Source: elparis

All business articles on 2021-03-24

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