Shares of Carrefour Brasil (CRFB3) soared on the Brazilian stock exchange this Tuesday (11) following confirmation that its controlling shareholder has submitted a proposal to the company’s board of directors to take the Brazilian unit private. As of 4:25 PM (BRT), Carrefour Brasil’s stock surged 16.43% to R$7.51, leading Ibovespa’s gains after multiple trading halts.
Major Development in Carrefour Brasil’s Ownership
This market movement comes after Bloomberg reported that the French retail giant Carrefour is exploring the acquisition of its Brazilian subsidiary, Atacadão. In response, Carrefour Brasil confirmed in an official statement that the French group has proposed converting its Brazilian operations into a wholly owned subsidiary.
If approved, Carrefour Brasil would be delisted from the Novo Mercado segment and lose its registration with the Brazilian Securities and Exchange Commission (CVM) as a publicly traded company under category “A” – which allows companies to issue shares.
How the Transaction Will Work
According to the proposed deal, each Carrefour Brasil share would be exchanged for a redeemable Class A, B, or C share in a newly formed entity called “MergerSub.” Shareholders will have the option to choose among these classes within a specific period following transaction approval.
The exchange ratio and other key terms of the deal are currently under negotiation between Carrefour’s controlling shareholder and an Independent Special Committee. This committee was appointed by Carrefour Brasil’s board of directors on January 17, 2025, and is composed of three independent board members. Negotiations have reportedly reached an advanced stage.
Next Steps in the Takeover Process
If negotiations conclude successfully, a definitive share incorporation agreement will be signed, outlining the terms and conditions of the transaction. Subsequently, a General Shareholders’ Meeting will be convened to vote on the proposal.
Market Impact and Investor Outlook
This potential privatization represents a significant strategic shift for Carrefour in Brazil, with investors closely watching how the deal unfolds. The move could streamline the company’s operations, enhance profitability, and create new expansion opportunities for the French parent company.
The financial market has already reacted positively to the news, as evidenced by the sharp rise in Carrefour Brasil’s stock price. However, final approval will depend on regulatory and shareholder decisions in the coming weeks.
Stay tuned for more updates on this developing story as Carrefour Brasil moves closer to a potential transformation in its corporate structure.
Comments