Navigate this market better. Subscribe for FREE stock alerts and information.

Wednesday, December 17, 2014

Tycoon Diniz buys stake in Carrefour's Brazil unit, source says, (NYSE: BRFS)

Brazilian billionaire Abilio Diniz agreed to purchase a 10 percent stake in Carrefour SA's Brazilian unit, a source with direct knowledge of the situation said on Wednesday, potentially strengthening its ability to take on the supermarket chain Diniz's father founded.Under terms of the deal, Diniz, whose Peninsula Participa��es holding company has been on an investing spree over the past 18 months, will pay between 500 million euros ($615 million) and 600 million euros for the stake, said the source, who requested anonymity because the talks are private.A deal with Carrefour would mark Diniz's return to retailing. The eldest son of the founder of GPA SA, Carrefour's Brazilian arch rival, he left the company in September last year to turn around BRF SA, a Brazilian processed foods company that is the world's No. 1 poultry producer.The transaction does not include Carrefour's Atacad�o warehouse retailer, according to the source.

BRF SA is a Brazil-based company engaged in the food processing industry. Shares of BRFS traded higher by 6.67% or $1.42/share to $22.72. In the past year, the shares have traded as low as $16.48 and as high as $27.31. On average, 1563040 shares of BRFS exchange hands on a given day and today's volume is recorded at 2221399.