Sao Paulo, Nov. 1 - Brazilian supermarket chain Companhia Brasileira de Distribuicao (CBD) confirmed in a statement Thursday it is in talks to acquire a controlling stake in local wholesale chain Assai Atacadista.
CBD, however, didn't provide further details about the current talks.
The company's comments came after local newspaper O Estado de Sao Paulo reported in its Thursday edition that CBD is in advanced talks to acquire Assai.
The newspaper, which cited anonymous sources, said CBD will acquire a 60% stake in Assai for approximately 200 million Brazilian reals ($115 million).
Assai expects to post revenue of BRL1.3 billion in 2007 at its 14 stores, said the report.
CBD has held the top spot in terms of supermarket sales among local retailers for six years, according to rankings by the Brazilian Supermarkets Association, or Abrasin. However, rival French retailer Carrefour (12017.FR) will likely outpace it in supermarket sales this year.
In April, Carrefour announced the purchase of wholesaler Atacadao for $1.1 billion. Atacadao closed 2006 with sales of about BRL5 billion. According to local reports, CBD also tried to buy Atacadao.
Supermarket sales in Brazil totaled BRL124.1 billion in 2006. CBD held a 13.3% market share, with sales of BRL16.46 billion. In the meantime, U.S. retail giant Wal-Mart (WMT) topped Carrefour for second place by just BRL2,000. Wal-Mart ended 2006 with a market share of 10.4% and sales of BRL12.9 billion.
CBD is jointly controlled by the Diniz family of Sao Paulo, the chain's founders, and by French retail company Casino Guichard Perrachon SA (12558.FR).
As of 1315 GMT, CBD's preferred share was down 0.18% at BRL27.61 on the Sao Paulo Stock Exchange, the Bovespa.