Carrefour receives Brazilian joint venture offer - FreshFruitPortal.com

Carrefour receives Brazilian joint venture offer

Carrefour receives Brazilian joint venture offer

A group of Brazilian businesses have offered a cash and scrip joint venture proposal to French multinational hypermarket chain Carrefour.

The proposal would involve an equal ownership merger of Carrefour's Brazilian assets with those of the country's largest food retailer Grupo Pão de Açúcar.

The offer was made by Brazilian company Gama, which is a wholly-owned subsidiary of an investment fund managed by BTG Pactual, while if accepted the deal will be capitalized by the Brazilian National Development Bank (BNDES).

In a release, Carrefour said BNDES and PTG Pactual would provide a capital injection of €2 billion (US$2.8 billion) and debt financing of €500 million (US$709.7 million).

The share transfer aspect of the deal would involve a 50-50 stake for Carrefour and Gama in Grupo Pão de Açúcar, giving Gama 90 million preferred shares in Carrefour.

Carrefour's board is expected to hold a meeting in the coming days to discuss the proposal.

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