Global retail giant Carrefour has reached an agreement with Advent International to acquire the third-largest retailer in Brazil Grupo BIG, for about $1.3 billion.
The deal reinforces Carrefour’s presence in Brazil, making it almost as big as its European operations outside of France. The acquisition, which is subject to Brazil antitrust approval, will be realised 70% in cash and 30% through new Carrefour Brazil shares.
The move is said to cement Carrefour position as the country’s largest supermarket operator. The French retailer will operate a premium chain under Sam’s Club format through a license with Walmart and will convert Grupo BIG’s Maxxi stores to its Atacadao banner.
Commenting on the deal Carrefour chief financial officer, Matthieu Malige, said: “We’re on the offense. It’s a move for the long term. Brazil has very appealing economic and retail prospects.”
The completion of the deal is expected in 2022.