Chile’s Cencosud buys Brazilian supermarket chain for $100 million

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The logo of retailer Cencosud is seen at its corporate building in Santiago

SANTIAGO – Chilean retailer Cencosud said on Friday it had signed a deal worth around $100 million to acquire Brazilian supermarket chain GIGA.

GIGA, founded in 2009, has 10 shops in Sao Paulo’s metropolitan area and a distribution center.

“The acquisition price is 500 million reais (approximately $100 million), and may be adjusted based on GIGA’s existing working capital at the date the transaction becomes effective,” the Chilean firm said in a statement.

“With this transaction Cencosud enters the largest market in Brazil and South America, directly with the fastest growing format in Brazil and the most resilient to recessionary macroeconomic contexts,” he added.

The completion of the purchase is subject to the fulfillment of certain conditions, including obtaining approval from Brazil’s antitrust watchdog CADE.

(Reporting by Fabián Andrés Cambero; Writing by Steven Grattan; Editing by Paul Simao)