French retail group Carrefour has decided to acquire all outstanding shares in its Brazilian subsidiary, Grupo Carrefour Brasil (Carrefour Brazil), increasing the group's stake from 67.4% to 100%.
The strategic decision aims to consolidate Carrefour's leadership in one of its key markets. It plans to subsequently delist the unit from the São Paulo Stock Exchange.
The group is offering 7.70 reais ($1.34) per share in the Brazilian unit, which could translate to 5.3bn reais ($920m), as reported by Reuters.
By taking the company private, Carrefour anticipates greater operational agility and a sharpened focus on execution, reinforcing its long-term investment strategy in Brazil.
Shares in Carrefour Brasil rose 10% on 11 February 2025.
Carrefour Group chairman and CEO Alexandre Bompard stated: "This operation marks a major milestone in the consolidation of our leadership in Brazil, where we have been expanding with an extremely competitive business model and through a series of targeted acquisitions. The purchase of all Carrefour Brazil shares completes this strategy of building an undisputed market position and will allow our local management to focus on driving operational and commercial excellence.
“We are convinced that this decision represents an excellent opportunity for the group’s capital allocation and will generate sustainable value for our customers, employees, partners and shareholders. It reflects Carrefour’s commitment to this vast country, which is now more than ever at the heart of its strategy."
An independent committee has reviewed the offer made to minority shareholders and found it equitable.
Following its recommendation, the board of directors of Carrefour Brazil endorsed the proposal unanimously.
The transaction will enhance Carrefour Group's earnings per share from the first year post-acquisition.
However, it remains contingent upon approval by Carrefour Brazil's minority shareholders during an extraordinary general meeting scheduled for the second quarter (Q2) of 2025.
The deal is expected to conclude before the end of Q2. The specific terms will be disclosed when the meeting is convened.
Peninsula, Carrefour Brazil’s second-largest shareholder, has pledged full support for the transaction. Opting for a full share alternative, Peninsula will exchange its Brazilian holdings for shares in Carrefour Group.
In January 2025, Carrefour officially terminated its operations in the Sultanate of Oman. No specific reasons were given.
