- Casino’s Brazilian subsidiary Grupo Pão de Açúcar plans to make a tender offer to achieve Éxito, Casino’s Colombian subsidiary
- Éxito has around 670 stores and 15 brands
- The company’s reshaping in Latin America must be concluded by November
Casino’s Brazilian subsidiary Grupo Pão de Açúcar – GPA – which has more than a thousand points of sale in Brazil, will take part in a reshaping of French company’s operations in Latin America, taking charge of Casino’s operations in the region.
With the aim of improving profitability and make its complex structure simpler in the region – a major concern for investors – GPA plans to achieve Éxito, Casino’s Colombian subsidiary, which will result in Casino controlling its entire Latin American activities in Brazil, Colombia, Uruguay, and Argentina with a 41.4% stake in Grupo Pão de Açúcar.
“This transaction aims to create a simplified platform for Casino group’s operations in Latam, held through a single asset with wide access to capital markets”, said to Financial Times the CFO of Casino, David Lubek.
The role of Grupo Pão de Açúcar in Casino’s strategy comes as no surprise, once the Brazilian subsidiary has been helping the French retailer to overcome hurdles in its home market, where Casino faces intense price competition with players like Carrefour and Auchan.