Carrefour has announced that its Brazilian division has entered into an agreement with Makro Atacadista SA to acquire 30 cash and carry stores in the country.
The deal, valued at R$1.95 billion (€420 million), includes the real estate of 22 fully owned Makro outlets and eight rented stores, as well as 14 fuel stations spread across 17 states in Brazil.
The acquired stores, with a total sales area of 165,000 square meters, generated sales of around R$2.8 billion (€600 million) in 2019, the retailer said.
The new stores will complement Atacadão’s existing network of 187 stores, expanding its presence notably in Rio de Janeiro and the northeastern region of Brazil. Chairman and CEO of Carrefour Group, Alexandre Bompard, described the deal as the company's "most significant move in Brazil since the acquisition of Atacadão in 2007".
"It underscores our strong commitment to expanding our growth formats, in line with the Carrefour 2022 Transformation Plan. With this transaction, we further expand our presence in the Brazilian market, the group’s second-biggest after France," he added.
The retailer plans to convert the stores to the Atacadão banner in the 12 months following the closing of the transaction. It also aims to optimise the cost structure and increase sales by more than 60% to gradually achieve profitability levels close to the existing Atacadão network.
Noël Prioux, CEO of Grupo Carrefour Brasil, commented, "This transaction represents a growth accelerator for Carrefour in Brazil. Combined with our organic growth pace, with 20 new Atacadão stores opened in 2019, this acquisition corresponds to one year and a half of expansion and is a significant step for Grupo Carrefour Brasil."
The transaction is subject to customary conditions including agreement by the owners of the rented properties and approval by CADE, Brazil’s antitrust authority, the retailer added. Carrefour was in talks for the acquisition of assets of cash and carry wholesaler Makro in Brazil for the past six months.