Wal-Mart Buys Majority Interest in CARHCO

Wal-Mart Stores Inc. of Bentonville on March 15 said it has increased its interest in Central American Retail Holding Co., which controls 375 supermarkets and other stores throughout Central America.

Wal-Mart now has a majority interest in the company, having increased its ownership from about 33 percent to 51 percent.

The company, also known as CARHCO, is the region’s leading retailer. It was formed in 2001 as a joint venture among three equal partners: the Paiz family, the major shareholders of La Fragua of Guatemala; Corporacion de Supermercados Unidos (CSU) of Costa Rica; and Ahold NV, a Dutch retailer.

Wal-Mart bought its initial 33 percent interest from Ahold in September. Wal-Mart did not release financial terms of the deal to buy CARHCO’s additional shares. Wal-Mart bought other retail chains in Central and South America last year.

CARHCO, which will now be renamed Wal-Mart Central America, has about 23,000 employees and 2005 sales of about $2.2 billion. It has stores in Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica.

Mike Duke, vice chairman of Wal-Mart Stores Inc. and head of Wal-Mart International, said the deal “demonstrates our confidence in the partnership and in the future of this business in Central America.”

Wal-Mart Central America plans to build new stores and remodel existing facilities. It expects to create 6,000 jobs during the next two years.