Wal-Mart acquires retail chain in Brazil
Purchases Sonae retail operations from Portuguese firm Modelo Continente.
16/12/05 Mike Duke, Vice-Chairman of Wal-Mart Stores, Inc., has announced the purchase of Sonae’s retail operations in Brazil, which include 140 hypermarkets, supermarkets and wholesale units. The total transaction was valued at €635 million (approximately $757 million).
The Sonae retail company, formerly owned by the Portuguese group Modelo Continente, is based in Porto Alegre. It has approximately 20,000 employees and operations in the state of São Paulo and the southern states of Rio Grande do Sul, Santa Catarina and Paraná.
The purchase was announced in São Paulo by Craig Herkert, President and Chief Executive Officer for Wal-Mart in the Americas, and Vicente Trius, president of Wal-Mart Brazil.
Herkert noted that Wal-Mart has significantly strengthened its position in Latin America with the Sonae purchase and the acquisition in September of a one-third interest in Central American Retail Holding Co. (CARHCO), that region’s largest retailer.
Trius said the Sonae acquisition would improve Wal-Mart’s position as a national retailer in Brazil. He said that with the acquisition, Wal-Mart Brazil will operate 295 units in 17 of Brazil’s 26 states. Wal-Mart Brazil recently opened its first Supercenter in the federal district of Brasilia, the nation’s capital. In 2004, Wal-Mart acquired the 118-store Bompreço chain in northeastern Brazil from Dutch retailer Ahold.
Trius said the acquisition represents a growth opportunity for both associates and suppliers.
Wal-Mart Stores, Inc. operates Wal-Mart Stores, Supercenters, Neighborhood Markets and SAM'S CLUB locations in the United States. The company also operates in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Germany, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico, South Korea and the United Kingdom. The company's securities are listed on the New York and Pacific stock exchanges under the symbol WMT.
