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Carrefour board discussing CBD strategy

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The board of directors of French retail giant Carrefour is expected to meet over the next few days to determine their response to a proposal to merge their Brazilian assets with rival CBD. While the proposed merger remains more a matter of speculation and third-party investor hope than anything driven by either CRRFY ( quote ) or CBD ( quote ) management, the news continues to move forward. This underscores why global players like CRRFY need emerging markets for growth. The emerging consumer demand story remains robust. Brazil is the fourth largest consumer market in the world and a combination of CRRFY and CBD would lock up at least 20% of that market. For comparison, Walmart ( WMT , quote ) routinely reports about 30% of the U.S. retail market. CBD may see a bit of a fight for control, as you can see from the way the stock has traded over the last few days, and there will be more volatility from here: But if this deal happens, it will be a landmark for developed/emerging mergers similar to the Anheuser-Busch merger with InBev that produced BUD ( quote ). BUD, notably, is controlled by the Brazilian side of the corporate family. Could a tie-up between CRRFY and CBD ultimately go the same way?

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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