Carrefour to Buy Brazil's Atacadao

Carrefour, the world's second-largest retailer, said Monday it agreed to buy Brazil's Atacadao company for 2.2 billion Brazilian reais ($1.09 billion; 825 million euros), becoming the largest food retailer in South America's biggest economy.

Atacadao operates 34 discount hypermarkets in Brazil, 17 of which are located in Sao Paulo state. Atacadao's property portfolio consists of 214,000 square meters (2.3 million square feet). The company posted net sales in 2006 of 4 billion reais ($2 billion; 1.5 billion euros), representing a 4% market share.

Carrefour's operations in Brazil consist of 109 hypermarkets, 34 Carrefour Bairro and 258 Dia hard discount stores with total net sales in 2006 of 3.8 billion euros ($5.16 billion).

Carrefour shares gained 0.5% to 57.66 euros ($78.39) on Euronext in Paris.