Political Risk Latin America Blog @PolRiskLatam

Brazil: Chile’s new investment backyard

Posted in News and Articles, Political Risk by politicalrisklatam on October 18, 2010

by Jude Webber for Financial Times, October 18th, 2010.

Brazil beckons. The lure of Latin America’s biggest economy is nothing new, but Chile’s Cencosud has become the latest group to put its money where its mouth is. Its $800m purchase of the Bretas supermarket chain now consolidates its position as the region’s biggest retailer by sales and confirms Brazil as a growing destination for Chilean investors.

The acquisition, Cencosud’s fifth in Brazil since 2007, doubles its size in the key market which has been tipped by some analysts to be the third-fastest growing retail market in the world, behind China and India, on the back of an economy expected to grow 7.5 per cent this year and a booming middle class.

The deal was announced after less than a month of direct talks between the two groups’ bosses, and will be finalised speedily. Cencosud has committed to opening eight new supermarkets by December. (continue reading… )

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