This week, the Brazilian retailer group CBD, which owns the Pao de Acucar supermarket chain, announced that it would buy electronics and home appliance store chain Ponto Frio. The merger makes Pao de Acucar the largest retail chain in the country, with annual sales estimated at 26 billion reais, overtaking the previous leader, French retail chain Carrefour.

CBD plans to make the purchase partially in cash (R$373.4 million) and partially in installments (R$451.1 million). Another part of the deal will be made using stock. The total cost of the purchase will come to R$824.5 million (US$421 million).

Owned by the Brazilian Diniz family based in Sao Paulo and Casino Guichard Perrachon SA, a French company, CBD will overtake its main domestic competitors with the merger, including Carrefour and Walmart.