Why Companhia Brasileira de Distribuição Stock Just Popped
Shares of Brazilian retailer Companhia Brasileira de Distribuição (NYSE: CBD) surged 15.5% through 1:30 p.m. EDT Friday after the supermarket and "hypermarket" operator announced the cession of 71 separate "commercial points located in several federative units of Brasil" to rival retailer Sendas Distribuidora SA, known as Assaí.
So what exactly is happening here? Companhia Brasileira de Distribuição (CBD) operates a lot of stores -- nearly 900 of various kinds and sizes. It plans to cede operational control of 71 Extra Hiper-branded stores -- 17 of which it owns and the rest of which it only leases -- to rival Assaí.
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Source Fool.com
