Sunday, January 17, 2010

French-owned Exito Supermarkets to be nationalized in Venezuela

The WSJ is reporting that Hugo Chavez will seize the Exito retail chain, after they had the audacity to raise prices after the local currency was devalued by 50%:

"Until when are we going to allow this to happen?" Chavez asked during his Sunday television program in reference to the alleged price hike by Almacenes Exito, headquartered in Colombia and controlled by French retailer Casino Guichard-Perrachon S.A. (CO.FR).
The Venezuelan leader said that new law may need to be approved to carry out the nationalization. "I'm waiting for the new law to begin the expropriation process," he said. "There's no going back," he added."
From the parent company's website, it looks like the 60 stores in Venezuela will have little to no effect on the company's results, as they amount to .6% of the total store base:



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