In a deal worth approximately 1.1 billion euros ($1.3 billion), French retail corporation Carrefour SA has agreed to purchase Walmart Inc.’s entire Brazil division. Following two failed takeover bids, this acquisition is expected to propel Carrefour to the top as France’s largest supermarket operator.
“Our group is on the offensive,” Chief Executive Officer Alexandre Bompard declared in a statement following the deal. This purchase is the largest that Bompard has completed during his four years at Carrefour, and will see the multinational corporation operate a premium retail chain under the Sam’s Club banner in Brazil through a license with Walmart.
The purchase is expected to be completed in 2022, with 70% of the fee being paid in cash and the remaining 30% arriving in the form of new Carrefour Brazil shares. As a result of the acquisition, Carrefour’s annual revenue in Brazil will be expected to reach about 100 billion reais ($18 billion).
This deal is the latest in a series of moves that Carrefour has performed in an attempt to expand its share in the Brazilian market. Back in 2007, Carrefour began this campaign by purchasing discount superstore operator Atacadao for a hefty fee of $1.1 billion.
This was not the first acquisition attempt that involved the French company. In January, the French government blocked a move by Canadian convenience store operator Alimentation Couche-Tard Inc. to purchase Carrefour.
