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ZAANDAM, Netherlands - Chilean retailer Cencosud S.A. has reached an agreement with Ahold for the acquisition of the Netherlands-based company's controlling stake in the Argentine supermarket chain Disco S.A.
The deal is subject to approval from antimonopoly authorities. The value of the deal is estimated at U.S. $60 million, well below the U.S. $200 million initially asked by Disco. If the deal is closed, Cencosud, which currently holds a 5.6 percent share in the Argentine market through Jumbo, will become Argentina's second-largest supermarket chain, with a 24.8 percent market share. Disco has a 19.2 percent share in the Argentine supermarket sector. French supermarket chain Carrefour leads the sector with a 29.6 percent market share.
Cencosud has interests in real estate, do-it-yourself stores, and hypermarkets in Chile and Argentina. The company operates 12 hypermarkets and 23 DIY stores in Argentina. It acquired Ahold's stake in the Chilean supermarket chain Santa Isabel in July 2003.
The divestment of Disco S.A. is part of Ahold's strategic plan to restructure its portfolio, divest underperforming assets, and concentrate on its mature and most stable markets.