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Carrefour Seeking Possible Brazil Merger With CBD

Published on May 23 2011 8:38 AM in Retail

Carrefour Seeking Possible Brazil Merger With CBD

French supermarket giant Carrefour may be seeking to merge its Brazil unit with Companhia Brasileira de Distribuicao Grupo Pao de Acucar (CBD), the largest retailer in Brazil, in a bid to increase the value of its assets ahead of next month's shareholder meeting.

A French newspaper reported on Sunday that Carrefour had already hired Lazard, the investment bank, to approach CBD's owners, the Diniz family, about a possible tie-up, in exchange for a stake in Carrefour. However, such a link-up presents possible competition issues, as CBD is 34 per cent owned by Carrefour's main French rival, Groupe Casino.

Carrefour operates around 500 stores in Brazil, and recently signed a joint-venture with bank Itau Unibanco to launch financial services in the country. (23 May)

© 2011 - ESM: European Supermarket Magazine

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