Speculation mounts over Carrefours future in Brazil

Speculation mounts over Carrefour's future in Brazil

Cencosud and Carrefour have remained silent on reports that Chilean retailer wants to acquire Carrefour's assets in Brazil.

According to financial daily Diario Financiero, Cencosud owner Horst Paulmann met with Carrefour executives to discuss the possibility of acquiring some of the French group's activities in the Latin American market.

Through the potential acquisition, Cencosud would look to expand in Brazilian states where it is under represented, the report suggested citing sources familiar with the matter. The company has followed an acquisitive strategy to fuel growth in Brazil - acquiring local retailer Gbarbosa in 20007 and then taking over three further local retailers in 2010.

A spokesperson for Cencosud declined to comment on whether the company had been in contact with Carrefour. However, the spokesperson did confirm that the group has ambitions to "scale-up" its presence in Brazil and expand into "new geographies" in the country.

In May, reports had claimed that Carrefour was in talks to merge its Brazilian operations with local player CBD. However, this was subsequently denied by CBD.

Carrefour declined to comment on its plans for Brazil.