Chilean retail giant Cencosud has agreed to sell its Bretas supermarket assets in the state of Minas Gerais, Brazil for R$716m ($123m).  

Through its Brazilian arm, Cencosud Brasil Comercial, the retailer will transfer 54 supermarkets, eight service stations, a distribution centre and other assets to Supermercados BH Comércio de Alimentos. 

The deal value is contingent upon adjustments based on net working capital and other conditions at the time of closing.  

The Bretas operation has been a component of Cencosud's portfolio since its acquisition in 2012.

However, competitive dynamics within Brazil have prompted a reassessment of strategy. This divestment allows Cencosud to concentrate on its other Brazilian ventures: GBarbosa, Mercantil Atacado, Perini in the Northeast, Prezunic and Spid in Rio de Janeiro, and its GIGA wholesale operation in São Paulo. 

The transaction bolsters Cencosud's capital profitability and fortifies its operations throughout Brazil.  

Cencosud CEO Rodrigo Larraín stated: “This particular transaction will allow us to focus our efforts and resources on markets in Brazil where we see greater growth opportunities and profitability.” 

The transaction is awaiting approval from Brazil's Administrative Council for Economic Defence, indicating a significant shift in Cencosud's market presence pending regulatory consent. 

Cencosud's decision to retain the Bretas brand while continuing operations in the Brazilian state of Goiás reflects a strategic emphasis on markets with higher growth potential.  

The 26 stores in Goiás will remain under Cencosud's management. 

The sale encompasses not only the physical assets but also the lease of one property owned by Cencosud and the assignment of leases for additional properties.  

Inventories, equipment and other operational necessities are included in the package to ensure a seamless transition for Supermercados BH Comércio de Alimentos.