Background on Cencosud and the Paulmann Family
Cencosud, a prominent retail company controlled by the Paulmann family, has announced the sale of 32 stores in Minas Gerais, Brazil, to the local firm Supermercados BH Comércio de Alimentos under the Bretas brand. The Paulmann family, ranked as one of Chile’s top three business families by Forbes, has a significant presence in retail across Chile, Argentina, Peru, Colombia, Brazil, and the United States.
Details of the Transaction
On February 7, Cencosud informed the market of its decision to sell all assets in Minas Gerais, Brazil, under the Bretas banner. The transaction encompasses 54 supermarkets, eight gas stations, and a distribution center for approximately 716 million reals (around 123 million USD). As of this week, Cencosud confirmed that the conditions for transferring 32 stores, gas stations, and the distribution center, along with related assets, have been met and approved by Brazil’s Administrative Council for Economic Defense (CADE).
Regarding the remaining stores, Cencosud stated that the process with CADE is progressing as expected and should conclude within typical timeframes for such procedures, which will be communicated accordingly.
Paulmann Family’s Succession and Cencosud’s Legacy
Following the passing of patriarch Horst Paulmann on March 11, 2025, the family initiated the succession process on May 1. Horst Paulmann, ranked as the 691st wealthiest individual globally by Forbes, left behind a substantial legacy and business philosophy embodied in Cencosud. His approach to retail has been instrumental in the company’s expansion across multiple countries.
Impact on the Retail Industry
This sale signifies Cencosud’s strategic move to streamline its operations and focus on core markets. The transaction will allow Bretas to strengthen its presence in Brazil’s retail sector, potentially enhancing competition and consumer choices. Meanwhile, Cencosud can concentrate on optimizing its existing stores and expanding in other regions.
Key Questions and Answers
- What is Cencosud? Cencosud is a leading retail company controlled by the Paulmann family, operating in Chile, Argentina, Peru, Colombia, Brazil, and the United States.
- Who is Bretas? Bretas is a Brazilian retail company that will acquire 32 stores from Cencosud in Minas Gerais, enhancing its market presence.
- What assets are included in the sale? The transaction covers 32 supermarkets, eight gas stations, and a distribution center in Minas Gerais.
- What is the value of the transaction? The deal is valued at approximately 716 million reals (around 123 million USD).
- What is the status of the remaining stores? The process for transferring the remaining stores is progressing with CADE, expected to conclude within typical timeframes.
- Who is Horst Paulmann? Horst Paulmann was a prominent Chilean businessman, ranked as the 691st wealthiest individual globally by Forbes, and the driving force behind Cencosud’s growth.
