Carrefour has sold off 10 % of its Brazilian activities to Abilio Diniz, who earlier had a nasty fight with French Casino after he had courted Carrefour about the control of his Pão de Açúcar firm.
525 million euro
Peninsula, Brazilian Abilio Diniz's investment firm, buys the 10 % share for 525 million euro. Carrefour CEO Georges Plassat describes Diniz as "the best partner to support our growth". "The agreement we have reached is a clear demonstration of our long-term commitment to Brazil, our second-biggest market." Carrefour managed a 10.2 billion euro turnover in 2013, in 256 stores and with 72,000 employees.
This transaction is a significant first step in the plan to "bring outside investors into the capital of its Brazilian subsidiary in order to strengthen its local ties and support its growth", Carrefour said. The group's statement makes it seem like the entire operation may lead to an IPO on the Brazilian stock exchange.
Abilio Diniz is a known figure in the French distribution world: alongside the French distribution giant Casino, he used to maintain control over Brazil's largest retailer, Pão de Açúcar, for years.
The collaboration ended in 2011 after it leaked that Diniz had contacted Casino's arch rival Carrefour. The result was a nasty fight which lasted 2 years and which Abilio Diniz eventually lost.