Venezuela Will Pay France's Casino $600 Million For Expropriated Stores

Venezuela will pay France’s Casino Guichard Perrachon SA about $600 million for the nationalization of the company’s hypermarkets and supermarkets in January, President Hugo Chavez said.

Chavez said that he approved the first payment of $120 million and that Venezuela will honor the full amount. Casino will hold a minority stake in a joint venture with the government to operate state-run markets that were created with the nationalized assets, Chavez said.

“After a series of meetings and negotiations, we’ve agreed to pay close to $600 million,” Chavez said today on state television. “We’re going to pay them and they’ll also keep a minority stake. We want to continue to work with them.”

Chavez nationalized Casino’s Exito hypermarkets and Cada brand supermarkets earlier this year after accusing the retail chain of illegally raising prices following the devaluation of the bolivar. Venezuela now sells food products and household goods at the so-called Abastos Bicentenarios at lower prices.

The government is attacking the “speculative” capitalist market by competing at lower prices, Chavez said. The chain may expand to other Latin American countries, he said.

“We’re selling beef, tuna, sardines and sugar at half the price,” Chavez said. “We’re dismantling the biggest speculation chain in the world.”

Chavez also said that he approved the nationalization of local food distributor Frigorificos Ordaz SA, known as Friosa, and will compensate the company.

To contact the reporter on this story: Daniel Cancel in Caracas at dcancel@bloomberg.net; Corina Rodriguez Pons in Caracas at crpons@bloomberg.net

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