April 9, 2010 / 2:40 PM / 7 years ago

UPDATE 1-Brazil Pao de Acucar eyes M&A, northeast growth

2 Min Read

* Pao de Acucar is in the look for acquisitions

* Retailer to focus expansion on northeastern states

* Pao de Acucar shares down 1.5 percent in Sao Paulo (Recasts, adds details of recent acquisitions, stock price)

SAO PAULO, April 9 (Reuters) - Grupo Pao de Acucar PCAR5.SA(CBD.N), Brazil's largest retailer, may look for more acquisitions to expand in the country's fast-growing northeast and to fend off increased competition, Chief Executive Officer Eneas Pestana said on Friday.

The company, which became Brazil's largest appliances retailer after the takeovers of Globex Utilidades and Casas Bahia last year, "hasn't stopped" eyeing more targets, Pestana told reporters on the sidelines of an event.

"We haven't stopped our acquisitions," Pestana said. "We are always looking. It can always happen."

The Sao Paulo-based retailer, which started in 1948 as a corner store, agreed to spend nearly 5 billion reais ($2.83 billion) last year to buy smaller rivals Globex GLOB3.SA and Casas Bahia, seeking to benefit from an increase in family income and employment that has stoked double-digit expansion in sales of home appliances.

Shares of Pao de Acucar fell 1.5 percent to 62.84 reais in Sao Paulo. The stock has doubled over the past year.

Pestana said Pao de Acucar's focus for expansion in 2010 would be on Brazil's northeast, where the company will compete with home appliance rivals Insinuante and Ricardo Eletro, which agreed to merge last month.

$1=1.769 reais Reporting by Vivian Pereira, Writing by Elzio Barreto; Editing by Lisa Von Ahn

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