Brazil CBD's Acquisition Of Ponto Frio To Cost BRL1.26 Billion
10 Junio 2009 - 11:04AM
Noticias Dow Jones
Brazilian grocer Companhia Brasileira de Distribuicao (CBD) will
pay some 1.26 billion Brazilian reals, or $650 million, to acquire
local retailer Ponto Frio, CBD's financial adviser said
Wednesday.
On Monday, CBD announced the acquisition of Globex Utilidades SA
(GLOB3.BR), the majority owner of Brazilian retailer Ponto Frio. It
will pay an initial BRL824.5 million to acquire a 70.24% stake in
Ponto Frio, held by Globex.
CBD said it will hold a public tender offer to acquire
outstanding Globex shares for 80% of the value paid to the
controllers. CBD's financial adviser, local company Estater, said
total cost of the acquisition, including the initial payment to
Globex plus the purchase of minority stakes, will be approximately
BRL1.26 billion.
With the acquisition, CBD said it will resume its previous
status as Brazil's largest retailer, with annual revenue worth
BRL26 billion. According to CBD, the previous market leader was
France's Carrefour SA (CA.FR).
The operation still must be approved by Brazil's government
antitrust bodies.
CBD is jointly controlled by the Diniz family of Sao Paulo, the
chain's founders, and by French retail company Casino
Guichard-Perrachon SA (CO.FR). Its main competitors in Brazil
include U.S. retail giant Wal-Mart Stores Inc. (WMT) and
Carrefour.
-By Rogerio Jelmayer, Dow Jones Newswires; 55-11-2847-4521;
rogerio.jelmayer@dowjones.com