CBD Expands Interest In Durable Goods

Brazil's largest grocery retailer Companhia Brasileira de Distribuição (CBD) has announced plans to acquire a 51% stake in Casa Bahia Commercial, the country's largest retailer of durable goods. The non-cash deal will see CBD merge its home appliance unit Globex Utilidades with Casa Bahia and take a 51% stake in the enlarged businesses, while Casa Bahia's existing shareholders will retain a 49% stake in the unit. CBD's purchased a 70% stake in electronics retailer Globex Utilidades in June 2009 for BRL824.5mn (US$422mn) and this latest deal suggests the firm is keen to continue diversifying away from the supermarket segment.

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