Retail Diversification As CBD Sweetens Takeover Deal

Brazil's largest grocery retailer Companhia Brasileira de Distribuição (CBD) has improved the terms of its takeover agreement with durable goods retailer Casas Bahia. To ensure that the deal goes ahead CBD has agreed to invest BRL690mn ($387m) into the unit and has also agreed to an additional BRL200mn payout and improved annual fees for Casas Bahia's current owners. The decision underlines CBD's determination to expand into the durable goods sector. However, BMI remains wary of the move which could see the firm having to divert resources away from its market leading supermarket business

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