Carrefour Brazil has announced that it completed the acquisition of Grupo BIG, approximately a year after first announcing the deal.
Grupo BIG is a venture company controlled by the private equity firm Advent International, in partnership with Walmart Inc.
Carrefour Brazil said that the transaction allows it to operate in a new market segment with the Sam’s Club format, through a licensing agreement with Walmart. The combined entity operates more than 1,000 stores in the country.
Carrefour Brazil said that it is expanding its traditional formats in Brazil, notably cash and carry and hypermarkets, while also extending its footprint in formats in which it had a more limited presence, notably supermarkets.
Brazil’s Administrative Council for Economic Defense (CADE) announced earlier this month that it had approved the acquisition of Grupo BIG by Carrefour Brasil. According to competition authority requirements, some 14 stores will be disposed by year-end.
'A Strategic Move'
Commenting, Alexandre Bompard, chairman and CEO of Carrefour Group, “With the acquisition of Grupo BIG, we are completing a strategic move, not only for Carrefour in Brazil, but for the Group as a whole. Our history in Brazil is a perfect reflection of our ambition.
"Within a few years, we conquered leadership, created a vast ecosystem of formats and services and built a powerful and committed powerhouse, while still benefitting from a huge potential for additional growth."
As a result of the transaction, Carrefour Brazil will feature a new governance structure, to be confirmed at an extraordinary general meeting to be held in July 2022. As part of the changes, Alexandre Bompard will be named chairman, while Abilio Diniz, chairman of the board of Peninsula Participações, will be named vice chairman.
Bompard said, "Together with an experienced board of directors and a senior level management team, we will keep writing the great story of Carrefour in Brazil, for the benefit of our customers, our employees and our shareholders."