French retail giant Carrefour has become Brazil’s largest food retailer with the acquisition of discount hypermarket operator Atacadao.
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In a deal announced today (23 April), Carrefour said it would buy Atacadao for BRL2.2bn (US$1.1bn).
Atacadao operates 34 outlets across Brazil, of which 17 are located in Sao Paulo state. The group’s property portfolio consists of 214,000 square metres of store space, of which over 90% is freehold.
In fiscal 2006, Atacadao posted net sales of BRL4bn, or 4% of the total market.
“With the transaction, Carrefour Brazil becomes the number one food retailer in terms of sales, further consolidating its strong position in the Sao Paulo market,” Carrefour said in a statement.
The deal, the world’s second largest retailer said, is part of Carrefour’s strategy to reinforce its presence in key markets through a multi-format approach. In Brazil, Carrefour now operates hypermarkets, supermarkets (Carrefour Bairro), and hard discount stores (Dia).
