Wednesday, January 15, 2014

Brazil map the foreign

New foreign networks, and other newcomers to Brazil, will expand investments in acquisitions and in opening new stores in the country, despite the uncertainty about the performance of the Brazilian retail in 2014.
Sources of international groups say the American Home Depot and Ikea Swedish put Brazil in the Group of countries with the potential to receive investment over the next 3 to 5 years.
According to the value it was found near sources who participated in the world's largest retail trade fair in New York, organized by the National Retail Federation (NRF) and that ends today, both Home Depot, network of shops of home supplies-with $ 75 billion in revenues in 2013, as Ikea-furniture retailer of decorative objects, whose annual sales revolve around € 30 billion-can purchase operations in Brazil to obtain faster number greater of points already installed.
According to information that have been circulating in the market, the Home Depot, Ikea and Chile's Cencosud already would have had preliminary conversations, separately, with the controllers of BR Home Centers, Brazilian network formed by the chains House Show and TendTudo, for the acquisition of the operation.
BR Home Centers is controlled by Leblon Equities and family Moraes, would not be for sale. The initial plan of growth wouldn't dream of opening the company capital on BMF Bovespa the value found &. But a source familiar with matter said that the hypothesis of a negotiation with a foreign group is not "completely removed" by the shareholders of the Brazilian retailer. Sought, Leblon Equities and Home Depot not commented on the matter.
Questioned about the possibility of opening shops in the country, Ikea said in note that investments in Brazil in 2014 are discarded, but noted it is "looking into investment opportunities in markets where it is not yet present.
The Chilean chain, which operates in Brazil Cencosud with regional flags supermarkets open in the Brazilian market, study its format of stores of building material products. In Chile, the Cencosud's pushy of decorating retailer and brand-building Easy. Sought, the company informs on note that doesn't comment market rumors.In May last year, the Chilean Falabella also, and competitor of Cencosud bought Brazil's Dicico for $ 388 million.
The project of expansion of Cencosud in Brazil to new segments, however, faces some obstacles. The company still needs to integrate business already purchased in retail food, years ago, and has already admitted that registers low growth in some local supermarket chains in the country, according to reports already published performance.
The advancement of investment in Brazil has been justified, in recent years, foreign networks as part of a plan for long-term growth in new emerging countries-without direct relationship with short-term scenarios, such as the slowdown of the economy of Brazil in 2013. The Brazilian trade registered last year a low growth, by preliminary data from sectoral entities and associations in the range of 3% to 4% by volume of sales-reflection of the increase in consumer confidence in the economy and high levels of defaults registered in part last year.
Still within the plans of international networks, the CVS Caremark reported to foreign analysts, at an event at the end of 2013, that there is a team of professionals working together with Brazilian executives of the Olango-CVS acquired Onofre in February last year. And that, by the initial results, Brazil is a country for "growth opportunities" in the network of pharmacies, said investor Larry Merlo, President of the company, said a source who was present at the event from CVS.
The pharmacy chain considers the possibility of expansion in the country, more accelerated, by the purchase of new Brazilian pharmacies networks, found the value. Sought, the CVS not manifested.
Valor Econômico - 15/01/2014
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