Carrefour and Casino are fighting to take stronger positions in Brazilian retail market

Big retail chains do their best to reinforce their positions on most dynamic markets.

Brazil is one of the most dynamic market with a +12,3% growth rate in 2010. For Carrefour already present there, it represents its second biggest market after France and for Casino not less than 1/3 of its international sales.

The two retail chains are fighting to take control of CBD Group (Grupo Pão de Açucar),  Brazilian retail chain leader with 1 650 stores. Today, Casino owns 37% of CBD group.

Carrefour has been offered a proposition from Gama, an investment fund supported by the Brazilian Central Bank, to create a joint-venture between Carrefour Brazilian subsidary and CBD Group. But financial process is quite complex and must be approved by 2 share holders General assemblies. Carrefour Brazilian assets would be part of the new company, Gama in reverse would receive 11,7% of Carrefour group shares.

 If operation comes to its end, this would represent a big success for Carrefour, synergies in case of merging have been evaluated to € 600 to 800 millions. With a 30 % market share in Brazil, Carrefour will be much bigger than its first competitor Walmart and Casino in Brazil.  

source : les echos, lexpress, challenges