Brazil Retailer CBD To Keep BRL600 Million In Cash,Eyes Acquisitions
01 Septiembre 2009 - 8:46AM
Noticias Dow Jones
Brazilian grocer Companhia Brasileira de Distribuicao (CBD) will
use 600 million reals ($318 million) it received from local bank
Itau Unibanco (ITUB) to reinforce its cash position, which may be
used for acquisitions, a CBD spokeswoman said Tuesday.
In June, CBD acquired local retailer Ponto Frio for BRL1.3
billion but CBD Chief Executive Claudio Galeazzi said at the time
that the company would consider other purchases.
Itau Unibanco this week announced that it had ended an
exclusivity accord that tied them to FIC, a consumer finance
venture set up by CBD. In order to continue financing ventures with
rival retailers, Itau Unibanco paid to get out of the contract.
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 Alastair Stewart, Dow Jones Newswires; 5511 2847-4520;
alastair.stewart@dowjones.com