The Brazilian branch of South American retailer Cencosud subsidiary has agreed to acquire cash and carry supermarket chain GIGA.

As part of the agreement, Cencosud Brazil will buy 100% of GIGA in a deal valued at R$500m (around $100m).

Founded in 2009, GIGA operates ten stores in Grande San Pablo, each with an average size of 4,500m², as well as one distribution centre.

The company generated R$1.5bn ($295.06m) in gross revenues for the twelve months to 31 March. As of 31 December 2021, it employed more than 1,300 people.

The acquisition marks Cencosud’s entry into the largest market in Brazil and South America.

Completion of the deal is subject to the fulfilment of certain conditions, including authorisation from the Brazilian antitrust authority.

The financial terms of the transaction can be altered depending on GIGA’s existing working capital on the date when the deal turns effective.

Cencosud CEO Matías Videla said: “We are very excited to be able to enter the largest market in Latin America such as S ã o Paulo, with a format that we know will have synergies with the stores that we currently operate in Brazil.

“GIGA is a highly valued brand in São Paulo, with a high growth potential and with a local administration that has demonstrated a successful execution of this format.

“This demonstrates our commitment and confidence in Brazil, it also expands the asset base in a format that is the most successful in the country and that we will continue to invest in the future.”

Cencosud has a multi-format retail presence in Chile, Argentina, Brazil, Peru and Colombia among other countries. The company employs more than 140,000 colleagues.

Last month, the United States Polo Association’s (USPA) official brand, US Polo Assn, opened its first Brazilian store at Morumbi Mall in São Paulo.