Wal-Mart Stores has remained coy on reports that it is in talks to buy Carrefour‘s Brazilian unit.
The statements came today (9 August) as Brazilian newspaper Valor Economico reported that executives from Wal-Mart’s US headquarters have held talks with Carrefour officials over a possible deal.
A spokesperson for Wal-Mart said that it has “made no announcement regarding Brazil” and added that the company does not comment “on market rumour or speculation”. Carrefour also declined to comment.
However, the plan proved controversial and was only supported by one of CBD’s two investors, Brazilian tycoon Abilio Diniz. CBD’s other co-owner, French retailer Casino, hit out at the plan, labelling it illegal and hostile.
Casino claimed that a 2005 deal with Diniz meant that it was due to become the sole controlling shareholder in CBD, which is also known by its trading name of Grupo Pao de Acucar, next year.
Diniz withdrew the proposal after the Brazilian national development bank decided not to fund the deal in the face of Casino’s opposition.