Walmart sells more of its minority interest in Brazil
by March 25, 2021 3:09 pm 484 views
French retailer Carrefour will acquire Grupo BIG Brasil from Advent International and Walmart who still own a small interest in the retail business. The deal is valued at $1.26 billion and is expected to close early next year.
The transaction will bolster Carrefour’s presence in Brazil as the second largest retailer in the country. Together with Grupo Big, Carrefour will operate 875 stores that are expected to generate about $18 billion in annual revenue.
“Our group is on the offensive,” Carrefour chairman and CEO Alexandre Bompard, noted in the release. “The acquisition of the BIG Group is a major transformation movement for Carrefour Brazil. In this continental country with immense development prospects, we have accentuated our leadership in the food distribution market over the past 3 years, and BIG will further strengthen it with very complementary formats and locations.”
In 2018, Walmart first stepped away from Brazil when it sold a majority interest of its retail business Grupo BIG to Advent. Walmart has since sold majority retail interests in the United Kingdom and Japan and divested from other non-retail businesses in Chile and Mexico.
The partners said once the deal is finalized, Carrefour will own 67.7% of Grupo BIG. Advent and Walmart would own a combined 5.6% stake in addition to other minority owners, not named in the release. The deal also calls for Carrefour to operate a premium chain under the Sam’s Club format in Brazil through a license with Walmart.