Walmart to buy Carrefour Brazil for 9 billion dollar?

Lars Olofsson, Carrefour's CEO, is travelling to Brazil to “motivate and reassure his Brazilian management”, according to an official statement. That might be necessary, as despite repeated denying, rumours about selling the Brazilian branch to Walmart keep getting stronger.

"6 to 9 billion dollar"

Now the transaction also has a price tag on it: between 6 and 9 billion dollar – but much like any other information about this case, it too has already been denied as it can not possibly be profitable for Walmart. The latter would be much better off opening their own hypermarkets in Brazil, while Carrefour would be crazy to completely leave one of the most important emerging markets in the world.

"UBS asked to prepare takeover"

Another – already denied – rumour was that Walmart has asked business bank UBS to prepare a possible takeover. The Americans have been active in Brazil since 1995 and are the third largest player in the distribution market after taking over Brompeco in 2004. The two bigger groups, Carrefour and Pão de Açúcar, had been in a soap-like series of courting and betrayal until Pão de Açúcar owners Casino (Carrefour's arch rivals) vetoed their possible merger just a few weeks ago.

Looking forward to 31 August

Avid followers of this soap series already look forward to 31 August, when Carrefour will release its semi-annual results. Judging by the profit warning in June, they will not be good and they will probably plunge Carrefour's shares even deeper – and they are already down 38% since January. The only advocate of Walmart taking over Carrefour Brazil is probably investment group Blue Capital, holding 14% of Carrefour shares and earlier already advocate of separating from Spanish branch Dia.

 

During the announcement of Carrefour's results, new director of the French branch Noël Prioux will explain his plans to relaunch Carrefour on its home market, while Lars Olofsson will present his “team of war” and strategies for emerging countries China and... Brazil. 

 

Lars Olofsson, Carrefour's CEO, is travelling to Brazil to “motivate and reassure his Brazilian management”, according to an official statement. That might be necessary, as despite repeated denying, rumours about selling the Brazilian branch to Walmart keep getting stronger.

"6 to 9 billion dollar"

Now the transaction also has a price tag on it: between 6 and 9 billion dollar – but much like any other information about this case, it too has already been denied as it can not possibly be profitable for Walmart. The latter would be much better off opening their own hypermarkets in Brazil, while Carrefour would be crazy to completely leave one of the most important emerging markets in the world.

"UBS asked to prepare takeover"

Another – already denied – rumour was that Walmart has asked business bank UBS to prepare a possible takeover. The Americans have been active in Brazil since 1995 and are the third largest player in the distribution market after taking over Brompeco in 2004. The two bigger groups, Carrefour and Pão de Açúcar, had been in a soap-like series of courting and betrayal until Pão de Açúcar owners Casino (Carrefour's arch rivals) vetoed their possible merger just a few weeks ago.

Looking forward to 31 August

Avid followers of this soap series already look forward to 31 August, when Carrefour will release its semi-annual results. Judging by the profit warning in June, they will not be good and they will probably plunge Carrefour's shares even deeper – and they are already down 38% since January. The only advocate of Walmart taking over Carrefour Brazil is probably investment group Blue Capital, holding 14% of Carrefour shares and earlier already advocate of separating from Spanish branch Dia.

 

During the announcement of Carrefour's results, new director of the French branch Noël Prioux will explain his plans to relaunch Carrefour on its home market, while Lars Olofsson will present his “team of war” and strategies for emerging countries China and... Brazil. 

 

Questions or comments? Please feel free to contact the editors


Arket Brussels opens: discover H&M's latest concept

14/09/2017

On Friday 15 September, H&M Group’s new store formula opens its doors on the Guldenvlieslaan in Brussels. The press got a sneak preview and discovered a surprising mixture of fashion, interior design and food. 

Nordstrom opens store without storage

13/09/2017

Fashion chain Nordstrom will open a new store formula in Los Angeles next month. Customers will only be able to get advice and try out clothing. Purchases can be picked up at the store at a later date.

Primark benefits from weaker British economy

12/09/2017

Irish fashion chain Primark takes full advantage of the weak British economy, which prompted its parent company AB Foods to adjust its full-year forecast. The chain will also continue its expansion plans.

Participatiemaatschappij Vlaanderen invests in FNG

11/09/2017

Government investment fund Participatiemaatschappij Vlaanderen (PMV) will invest 15 million euro in fashion group FNG in return for 5 % of its shares. The money will go towards international expansion.

Gap Inc will focus on Old Navy and Athleta

08/09/2017

American fashion company Gap will alter its internal strategy and turn its attention to Old Navy and Athleta. Gap and Banana Republic, which both received the most attention up until now, will have to step aside.

Global Fashion Group cuts losses

08/09/2017

Global Fashion Group, the fashion group founded by investment group Kinnevik and Rocket Internet, managed to lower its losses even more in the second quarter. On top of that, turnover grew more than 25 %.

Back to top