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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.
