Wal-Mart yesterday raised its stake Central American Retail Holding Co. (CARHCO) to 51% and will change the name of the Central America grocery operator to Wal-Mart Central America. The move further extends the retailer's growing reach in Latin America, giving it a stronger foothold in the largely poor region of around 41m people that bridges Mexico with South America.

CARHCO has 375 supermarkets and other stores in Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica and posted sales of about $2.2bn in 2005. CARHCO was formed in 2001 as a joint venture among three equal partners: Ahold, the Paiz family, who are the major shareholders of La Fragua; and Corporacion de Supermercados Unidos (CSU). Wal-Mart acquired Ahold's 33% stake in CARHCO in September 2005. At that time, Wal-Mart said it hoped to have a majority stake in about a year. Wal-Mart disclosed its additional investment, which brings its stake to 51%, on Wednesday, but did not divulge terms of any of the purchases.

NamNews - Thursday 16th March 2006

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