Cencosud Weighing Up Retail Buy But BMI Cautious About Argentina's Long Term Prospects

Chilean retail giant Cencosud has revealed that it is considering buying the 38.6% stake in its Argentine supermarket subsidiary that it does not already own. The announcement comes after the group of investment funds that currently holds the stake revealed that they wanted to sell and Cencosud has said that it has the option of acquiring the equity with either cash or a share swap. Cencosud's decision will be driven by its view of Argentina's retail sector, which is currently recovering strongly following a slowdown, but for which BMI believes future growth may be marred by inherent structural problems within

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