PARIS — Shares in Carrefour SA rose 5.9 percent on the Paris bourse Friday after the retail giant said it had sold its operations in Colombia for an enterprise value of 2 billion euros, or $2.62 billion at current exchange rates.
This story first appeared in the October 22, 2012 issue of WWD. Subscribe Today.
Carrefour said the Chilean group Cencosud, which operates in Chile, Brazil, Peru, Argentina and Colombia, would take over its 72 hypermarkets, 16 convenience stores and four cash-and-carry units. Excluding sales of gasoline, they are said to generate annual revenues of about 1.5 billion euros, or $1.96 billion at current exchange.
Carrefour, the world’s second-largest retailer behind Wal-Mart Stores Inc., characterized the disposal as in line with its new strategy of “focusing on geographies and countries in which it holds or aims to develop a leading position.”
The transaction with Cencosud should be finalized before the end of the year.
Carrefour said sales rose 2.1 percent in the third quarter, driven by emerging economies as Southern Europe continued to struggle.
Turnover in Latin America rose 5.2 percent during the quarter, with sales in Brazil — Carrefour’s second-largest market — edging ahead by 0.1 percent.
Analysts had hailed the better-than-expected results as a sign that the reforms being put into place by new chairman and chief executive officer Georges Plassat are beginning to bear fruit.