(Boursier.com) — Crossroads Brazil (Grupo Carrefour Brasil) today announced the completion of the previously announced acquisition of Grupo BIG from Advent International and walmart Inc. The operation consolidates Carrefour’s leading position in the country, with now a strong presence in all the states of the country. The transaction allows Carrefour to strengthen its position in its traditional formats, in particular cash & carry and hypermarkets, while extending its presence in formats in which it was less present, in particular supermarkets. In addition, Carrefour Brazil now operates in a new market segment with the Sam’s Club format, via a license agreement with Walmart. This merger creates a group with more than 1,000 stores in the country, representing nearly 25% of the food distribution market in Brazil. Compatible Grupo BIG stores will be converted to Carrefour banners in the coming months. According to the decision of CADE, the Brazilian competition authority, 14 stores will be sold by the end of the year.
The acquisition, announced in April 2021 based on an enterprise value of R$7.0bn (approx. Group EBITDA of at least R$2.0bn (approximately €390m) in 2025″, commented Carrefour. The acquisition was made 70% in cash and 30% in new Carrefour Brazil shares. Following the transaction, the Carrefour group holds approximately 67.7% of Carrefour Brazil (compared to 71.6% previously), Peninsula Participaçoes 7.2% and Advent International and Walmart, via subsidiaries, hold a joint stake. by 5.6%. To reflect the new shareholder structure and support the consolidation of the new entity, Carrefour Brazil is strengthening its main governance bodies. A new Board of Directors will be submitted for shareholder approval at an Extraordinary General Meeting to be held next July in Sao Paulo. The new Board of Directors will be chaired by Alexandre Bompard, CEO of Carrefour. Abilio Diniz, Chairman of the Management Board of Peninsula Participaçoes will serve as Vice Chairman of the Board. New members will also join this Board: Patrice Etlin, Managing Director of Advent Latin America, Elodie Perthuisot, Executive Director E-Commerce, Data and Digital Transformation of the Carrefour Group, and Laurent Vallée, General Secretary of the Carrefour Group. Claudia Almeida e Silva and Vânia Neves will join the Board of Directors as independent members. Alongside Matthieu Malige, Chief Financial Officer of the Carrefour Group and former Chairman of the Board of Directors of Carrefour Brazil, they will bring their skills to support the Managing Director of Carrefour Brazil, Stéphane Maquaire, and his Executive Committee. This has also been remodeled, with a balance between managers from Carrefour Brazil, newcomers from Grupo BIG and new entrants.
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