Carrefour Seeking Possible Brazil Merger With CBD
Published on May 23 2011 8:38 AM in Retail
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