Carrefour says billionaire Abilio Diniz buys10% in Brazilian subsidiary for $663 mn

Carrefour SA, France's largest supermarket chain, today announced that Brazilian investment company Península Participacoes run by billionaire Abilio Diniz, has acquired a 10-per cent stake in its Brazil subsidiary for about 1.8 billion reais ($663 million).

Península, through its Península II Fundo de Investimento em Participações, is investing €525 million or $663 million for a 10 per cent stake in Carrefour's Brazilian subsidiary, valuing the company at 20.4 billion Reais.

Península holds options to raise its stake to a maximum of 16 per cent within the next five years.

The investment is part of Carrefour chairman and CEO, Georges Plassat, plan to bring outside investors to invest in its Brazilian subsidiary in order to strengthen its local ties and support its growth.

Carrefour, based in the outskirts of Paris, said that the investment in its Brazilian subsidiary could also lead to a listing on the Brazilian stock exchange in the future.

''Abilio Diniz will bring us his unrivalled knowledge of Brazil's retail market and business landscape. As we prepare to celebrate the 40th anniversary of our presence in the country in 2015, Abilio Diniz is the best partner to support our growth,'' said Plassat.

With 2013 sales of $6.2 billion, Brazil is Carrefour's second-largest market, where it operates under the Carrefour, Carrefour Bairro and Atacadão brands.

It is Brazil second-largest retailer after Companhia Brasileira de Distribuicao (CBD) group, which was founded in 1948 by Diniz's father.

It is also developing new convenience formats under the Express and Supeco banners, and is working on the relaunch of its e-commerce activities in the second half of 2015

With 10,105 stores in 34 countries, Carrefour is the world's second-biggest retailer after Walmart.

It operates in France and its overseas territories, in Europe, Latin America, Asia, North Africa and the Middle East.