The Casino Group signed an agreement to form a strategic partnership with the Bolivarian Republic of Venezuela, which is acquiring 80.1% of Cativen for a total consideration of $690 million.

Under the leadership of President Hugo Chavez, Venezuela has taken over parts of the retail sector, in what he has called a movement towards "21st Century socialism", to lower food prices for consumers.

The other shareholders of Cativen have disposed of their entire shareholding whereas Casino will retain a 19.9% participation in the company to continue providing operational support to and develop cooperation with the new state-controlled entity.

As a result of this transaction, the Casino Group will receive a total consideration of $622.5 million related to the sale of its participation in Cativen and to the recovery of approximately $265 million outstanding intercompany loans.

Casino will receive 60% of the total payment upon the imminent closing, being 20% in cash and 40% in two USD denominated promissory notes of equal amount each and maturing in November 30th 2010 and November 30th 2011 respectively. The remaining 40% will be paid in cash following a payment schedule that extends until February 2011.

The Casino Group looks forward to continue serving the consumer needs of the Venezuelan citizens through this newly formed alliance with the Bolivarian Republic of Venezuela.