Wal- Mart purchases Sonae's retail operations in Brazil
15 Dec '05
2 min read
World largest retailer Wal- Mart Stores Inc's Vice-Chairman Mike Duke announced the purchase of Sonae's retail operations in Brazil, which include 140 hypermarkets, supermarkets and wholesale units.
The total transaction was valued at Û635 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 Sao Paulo and the southern states of Rio Grande do Sul, Santa Catarina and Parana.
"This acquisition reinforces their commitment to Brazil," said Duke.
"They are looking forward to the opportunity to offer customers in a new region the low prices, wide assortment of merchandise and outstanding customer service that they have become known for providing in other parts of the country."
The purchase was announced in Sao 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.
marketing@alchempro.com
