Cencosud Agrees to Sell Its Bretas Operation in Minas Gerais as Part of Its Business Restructuring in Brazil

• The sale agreement was entered into by Cencosud Brasil for an amount of R$716 million (approximately US$123 million) and is subject to approval by Brazil’s Administrative Council for Economic Defense (CADE).

• The transaction allows Cencosud to focus its efforts and capital on more profitable markets in Brazil.

SANTIAGO, Chile--(BUSINESS WIRE)--Cencosud S.A., through its Brazilian subsidiary, executed today an agreement for the transfer and sale of assets operated by the company in the state of Minas Gerais under the Bretas brand. The agreement includes the divestment of the company’s entire operation in the state, comprising 54 supermarket stores, 8 service stations, a distribution center, and other related assets. Bretas currently operates in both Minas Gerais and Goiás. Cencosud will retain ownership and exclusive rights to the Bretas brand and will continue operating its 26 stores in the state of Goiás under this brand.

The agreement executed by Cencosud Brasil Comercial S.A. with Supermercados BH Comércio de Alimentos S.A. sets a sale value of R$716,000,000 (seven hundred and sixteen million Brazilian reais), equivalent to approximately US$123 million. This amount will be adjusted at the time of closing based on net working capital and other conditions outlined in the agreement. The transaction is subject to approval by Brazil’s Administrative Council for Economic Defense (CADE), the country’s competition regulatory authority, as well as compliance with standard contractual conditions for this type of operation.

The transaction includes the lease of a property owned by Cencosud and the assignment of lease agreements for the remaining properties. Additionally, it encompasses the sale of inventories, equipment, facilities, and other fixed assets required for operations in the state of Minas Gerais.

Cencosud acquired the Bretas operation in 2010 and, considering the current competitive landscape and its future strategy, has decided to divest these assets in Minas Gerais to focus on the rest of its operations: Bretas in Goiás, GBarbosa, Mercantil Atacado, and Perini in the Northeast, Prezunic and Spid in Rio de Janeiro, and GIGA in the wholesale format in São Paulo, acquired in 2022. The transaction also enables Cencosud to enhance the profitability of its capital and strengthen its operations across the rest of Brazil.

Regarding this transaction, Rodrigo Larraín, CEO of Cencosud, stated: “This particular transaction will allow us to focus our efforts and resources on markets in Brazil where we see greater growth opportunities and profitability.”

About Cencosud

Cencosud is one of the largest and most prestigious retailers in the Americas, with operations in Argentina, Brazil, Chile, Peru, Colombia, and the United States -in addition to a commercial office in China and a technological and digital Hub in Uruguay- where it develops a successful multi-format strategy that today employs more than 110 thousand people. Its operation encompasses several business lines, such as Supermarkets, Home Improvement, Department Stores, Shopping Centers and Financial Services.

Additionally, Cencosud operates complementary businesses such as Cencosud Media, Cencosud Ventures and CencoPay, all of which are known for their quality, excellent level of service, and focus on customer satisfaction. For more information, please visit www.cencosud.com

Cencosud has been operating in Brazil since 2007 through the brands GBarbosa, Mercantil Atacado, Bretas, Perini, Prezunic, Spid, and Giga Atacado. It also operates the Cartão Cencosud financial services business. With more than 300 stores and approximately 20,000 employees, Cencosud is present in the states of Alagoas, Bahia, Ceará, Goiás, Minas Gerais, Pernambuco, Rio de Janeiro, Sergipe, and São Paulo.