Wal-Mart acquires retail chain in Southern Brazil

Wal-Mart Stores Inc., Bentonville, Ark., announced today the purchase of Sonae's retail operations in Brazil, which include 140 hypermarkets, supermarkets and wholesale units, for euro 635 million (about $757 million). The Sonae retail company, formerly owned by the Portuguese group Modelo Continente, is based in Porto Alegre. Craig Herkert, president and CEO for Wal-Mart in the Americas, noted that Wal-Mart has significantly strengthened its position in Latin America with the Sonae purchase and the acquisition in September of a one-third interest in Central American Retail Holding Co. (CARHCO), that region's largest retailer. Vicente Trius, president of Wal-Mart Brazil, said the Sonae acquisition would improve Wal-Mart's position as a
national retailer in Brazil. He said that with the acquisition, Wal-Mart Brazil will operate 295 units in 17 of Brazil's 26 states. Wal-Mart Brazil recently opened its first Supercenter in the federal district of Brasilia, the nation's capital. In 2004, Wal-Mart acquired the 118-store Bompreco chain in northeastern Brazil from Dutch retailer Ahold.