Investment in Brazil's retailers 'can help shareholders capitalise on success'
Date added: 18th December, 2009 at 09:08
(view all articles from December, 2009)
Categories: Economy
Investment in Brazil's retail companies could be a good way for would-be shareholders to capitalise on the nation's economic success, it has been suggested.
Writing a column for Investment U, researcher Tony Daltorio remarked that giants such as Companhia Brasilieira de Distribuicao - which is the Latin American country's number one grocer - could be particularly worth backing.
The company keeps growing, he explained, through its policy of acquiring regional retailers across the nation.
Earlier in 2009, it took a 40 per cent stake in Assai and 70 per cent of Globex Utilidades, he pointed out.
Furthermore, it recently made an investment in Brazil's largest electrical and household goods retailer Casas Bahia, which saw it merge to form a company which will generate annual sales of 40 billion reais (£13.8 billion).
"The company will build more stores in the poorer sections of town, capitalizing on their improving conditions and Brazil's larger potential," he said.
His recommendations come after the Latin American Herald Tribune reported that finance minister Guido Mantega predicted investment in Brazil will rise by 15 per cent in 2010 compared to this year.
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