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Bloomberg
Carrefour SA’s Brazil unit rallied as investors cheered the French retailer’s move to accelerate the expansion of its cash-and-carry business in Latin America’s largest economy.
Shares of Atacadao SA rose as much as 6.2% in Sao Paulo on February 17, the most in more than two months, after it agreed to buy 30 cash-and-carry
stores and 14 gas stations operated by retail chain Makro Atacadista for 1.95 billion reais ($452 million).
Jefferies said the transaction should add 3% to Carrefour’s earnings by 2023, and Itau BBA sees it generating about 1 billion reais of value.
Atacadao said the 30 stores posted gross sales of around
2.8 billion reais in 2019.
The deal lets Carrefour further benefit from the cash-and-carry business model, in which goods are sold, often in bulk, from a wholesale warehouse. The unit represents more than half the group’s revenue in the country.