Carrefour and Pão de Açucar Negotiations Essay

2924 Words Jan 6th, 2013 12 Pages
Carrefour and Grupo Pão de Açúcar Merger

Intercultural Negotiation

Rafael Campos de Oliveira

November 2012

Contents Table


Background Information

a. Background Information of Carrefour b. Background Information of Pão de Açúcar c. Background Information of Groupe Casino 1. Situation before the negotiation 2. The proposal 3. Groupe Casino position 4. End of Negotiation 5. Future for Carrefour and Pão de Açúcar 6. Final commentaries 7. References

Carrefour and Pão de Açúcar merger

This paper will describe the negotiation to merge Pão de Açúcar, the largest retailer in Brazil, and Carrefour, the
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In 1995, there were already a chain of supermarket and it grew even more after a merger with Promodès, one of its major competitors in the French market at that time. The Carrefour group was the first in Europe to open a hypermarket, a large supermarket and a department store under the same roof, on 15 June 1963. Currently, Carrefour reviewed its situation under conditions of stagnant growth and increasing competition in France from rivals including Groupe Casino, and planned to invest €1.5 billion ($2.1 billion) to change the supermarket with the new concept of Carrefour Planet in Western Europe. Carrefour is today controlled by financial investors - the Blue Capital and Colony funds, as well as Bernard Arnault (owner of Louis Vuitton), which according to the press, would be willing to sell his shares in the group. In Brazil, Carrefour was founded in 1975 and today it is one of the major retailers in Brazil in competition with Wal-Mart, Groupe Casino/Pão de Açúcar and others.

BACKGROUND INFORMATION OF GROUPE CASINO Groupe Casino (or Casino Guichard-Perrachon) is a large French multinational corporation and the main Carrefour competitor in France (under the name Géant). In Brazil, Casino entered the market after injecting capital into the Brazilian retailer Pão de Açúcar in 1999, saving it from bankruptcy. In 2005, it bought more shares and also the control of the operations, starting in 2013.


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