Date of publication: March 15, 2006
Source: Associated Press
BENTONVILLE, Ark. (AP) - Wal-Mart Stores Inc. said Tuesday it boosted its stake in Central American Retail Holding Co., or CARHCO, lifting its ownership of Central America's biggest supermarket retailer to 51 percent from a previous 33.3 percent.
Financial terms of the latest agreement as well as the original investment were not disclosed.
Wal-Mart also said it would replace the name CARHCO with Wal-Mart Central America. No immediate changes were planned in names of any of the store formats operating in the region, it added.
CARHCO operates 375 supermarkets and other stores in Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica. The company generated sales of $2.2 billion in 2005.
The world's largest retailer also said its expansion in Central America would create more than 6,000 jobs over the next two years and stimulate export of locally produced products. Wal-Mart said it imports more than $350 million in goods from Guatemala, Honduras, El Salvador, Nicaragua and Costa Rica.
Wal-Mart acquired a 33.3 percent interest in CARHCO from Dutch food retailer Royal Ahold NV in September 2005.
Shares of Wal-Mart edged up 9 cents to $45.46 in morning trading on the New York Stock Exchange