Brazilian retailer Companhia Brasileira de Distribuicao (CBD) is staying coy about its plans to expand through acquisitions despite receiving a BRL600m (US$318.4m) funding boost.
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CBD, better known through its trading name Grupo Pao de Acucar, was last week handed the sum by Itau Unibanco after the Brazilian bank sought to relax a consumer finance venture with the retailer.
The bank, which has similar tie-ups with other Brazilian retailers, wanted to end exclusivity clauses locked into the venture with CBD.
The retailer’s CFO, Eneas Pestana, reportedly told Brazilian daily Valor Economico that the cash injection meant the group had “more tranquility to invest”.
However, a spokesperson for CBD insisted the retailer was not in talks with potential takeover targets and was only studying “prospects”.
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By GlobalData“The amount paid by Itau is an additional revenue that can – although it is not required – assist in the acquisition and mergers process,” the spokesperson told just-food.
“Unfortunately we can not disclose which companies and where are being studied. However, these include all business related to our core business, including supermarkets, hypermarkets, drugstores, gas stations, convenience stores and wholesale.”
CBD operates just under 600 stores throughout Brazil. Its banners include the upmarket Pao de Acucar chain and Extra hypermarkets, which CBD uses to compete on price with Wal-Mart.
Last month, CBD said its second-quarter profits had more than doubled, boosted by increased sales and lower financial costs.
