Cencosud S.A. has agreed to sell its Bretas operations in Minas Gerais to Supermercados BH for R$716 million, allowing Cencosud to focus on more profitable markets in Brazil.

Information on the Target

Cencosud S.A., through its Brazilian subsidiary, has initiated the sale of its operations under the Bretas brand in the state of Minas Gerais. This agreement encompasses all company operations in this state, which include 54 supermarket locations, 8 gas stations, a distribution center, and various related assets. Currently, Bretas operates not only in Minas Gerais but also in Goiás, where Cencosud will retain ownership of the brand and continue operating 26 stores.

The sale agreement was finalized between Cencosud Brasil Comercial S.A. and Supermercados BH Comércio de Alimentos S.A., valued at R$716 million (approximately USD $123 million). The final sale amount will be subject to adjustments based on net working capital and other contractual conditions upon closing.

Industry Overview in Brazil

Brazil's retail industry remains one of the largest and most diverse markets in South America. With a wide range of domestic and international players, the sector has a significant impact on th