PARIS — Carrefour Group said Thursday that investment company Peninsula is taking a 10 percent stake in its Brazilian subsidiary.
It represents an investment of 1.8 billion reais, or $699.9 million at current exchange, valuing the company at 20.4 billion reais, or $7.9 billion.
“This transaction is a significant first step in the plan, previously announced by Carrefour Group chairman and chief executive officer Georges Plassat to bring outside investors into the capital of its Brazilian subsidiary in order to strengthen its local ties and support its growth,” stated Carrefour.
Peninsula, a Brazilian company chaired by Abilio Diniz, has the option to raise its stake to a maximum level of 16 percent in the next five years.
Having generated in 2013 sales of more than 34 billion reais, or $15.82 billion at average exchange, Brazil is Carrefour’s second-largest market.
Plans for the country include renovating and expanding the store network, developing new convenience formats and relaunching its e-commerce activities.