““consolidation, coupled with a desire among the survivors to restore normal profit levels, helps to usher in an era of orderly competition based on serving the variety of wants. In 1975, Carrefour became the first foreign retailer in Brazil. Through a period of aggressive mergers and acquisitions, they increased their market share and forced smaller competitors to leave or consolidate. In 1999, the largest national retailer, Companhia Brasileira de Distribuicao, merged with Casino Guichard Perrachon & Cie, to compete against the growing foreign chains, which now hold 40% of the market. The outcome has been a more orderly market where each is large and successful enough not to have to resort to permanent cut-throat price competition.””
