Chile-based retail company Cencosud has agreed to sell its Bretas supermarket chain in the Brazilian state of Minas Gerais to local player Supermercados BH for R$716 million (€119 million).
The deal encompasses 54 supermarkets, eight petrol stations, a distribution centre, and other related assets in the state, the company added.
While Cencosud will retain ownership of the Bretas brand, they will only continue operating the 26 Bretas stores located in the state of Goiás. The final transaction value will be adjusted based on the net working capital and other contractual conditions.
The sale is pending approval from the Administrative Council for Economic Defense (CADE) and fulfilment of standard closing conditions.
The agreement includes the transfer of a Cencosud-owned property lease and the assignment of other property lease contracts, as well as the sale of inventory, equipment, facilities, and other fixed assets necessary for operation in Minas Gerais.
Competitive Scenario
Cencosud, which acquired Bretas in 2010, stated that the decision to sell was based on 'the current competitive scenario, as well as the company's future strategy'. The company chose to focus on its other Brazilian operations: Bretas in Goiás, GBarbosa, Mercantil Atacado, and Perini in the Northeast, Prezunic and SPID in Rio de Janeiro, and GIGA Atacado in São Paulo, acquired in 2022.
Cencosud CEO Rodrigo Larrain stated that this sale will allow the company to concentrate its efforts and resources on markets in Brazil with greater growth and profitability potential.
Supermercados BH, a chain with over 300 stores, earned R$17.4 billion (€2.9 billion) in 2024, placing it fifth in the 2024 ABRAS ranking. Cencosud, with revenues of R$11.2 billion (€1.9 billion) during the same period, placed eighth.
Cencosud's Brazilian presence, established in 2007, encompasses several brands, including GBarbosa, Mercantil Atacado, Bretas, Perini, Prezunic, SPID, and GIGA Atacado, as well as the Cencosud Card financial service.
Operating over 300 units, the company serves customers in the states of Alagoas, Bahia, Ceará, Goiás, Minas Gerais, Pernambuco, Rio de Janeiro, Sergipe, and São Paulo.
