Venezuela to Pay $690 Million for Casino Retail Operations After Seizure

Venezuela will pay $690 million for an 80 percent stake in Casino Guichard Perrachon SA’s local retailing operations after President Hugo Chavez seized some supermarkets earlier this year for what the state called unauthorized price increases.

The government will pay the Casino-led local unit known as Cativen, $138 million, or 20 percent of the total amount, on Sept. 7, according to a statement from the Information Ministry published on the website of Venezuela’s state television. The payment will be made in cash and bonds, the statement said.

Chavez seized six Exito brand retail stores and more than 30 Cada brand supermarkets operated by Cativen this year for illegally raising prices following a devaluation. They were converted into state-run food and household-goods chain known as Abastos Bicentenarios. Saint-Etienne, France-based Casino will keep a 20 percent stake in the business.

Chavez, who has nationalized companies in the energy, cement, telecommunications, food, finance and metals industries, says that he’s fighting Latin America’s highest inflation rate by dismantling “speculative” retail chains in the oil- exporting nation.

To contact the reporter on this story: Daniel Cancel in Caracas at dcancel@bloomberg.net.

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