Eki, which operates 150 stores in Buenos Aires and Santa Fe, is buying local competitor Leader Price.

Business headlines this week in the Latin American supermarket space present a sharp contrast in the stability and predictability of investing in certain countries. France’s Groupe Casino operates supermarket chains in both Argentina and Venezuela under the banners Leader Price, Libertad, HiperCasa (in Argentina), Cada and Exito (in Venezuela).

When Hugo Chavez devalued Venezuela”s bolivar 50% last week, he vowed stiff penalties for any retailers suspected of raising prices. Unfortunately for Groupe Casino, “El Loco” made good on his threats yesterday by taking control of the Exito chain which can only be viewed as the first step toward nationalization. Reuters reports the stores will now operate under the banner Comerso.

Meanwhile in Argentina, local supermarket chain Eki, which is 90% controlled by U.S. investment firm Nexus Partners, announced it will purchase Groupe Casino’s chain of 26 Leader Price grocery stores in Buenos Aires. The move by Nexus Partners is solid for two reasons: 1.) It’s a unique opportunity to grow market share when a large competitor is dealing with serious problems in Caracas, and 2.) Supermarkets in Argentina have weathered the financial crisis beautifully.

Sales in the “supers” increased every month in 2009 (vs. 2008), according to Clarin, and prices stayed virtually unchanged. INDEC, The National Institute of Statistics and Census provides a detailed analysis of the continued growth and stability in this important sector of Argentina’s economy.

For more information about investment opportunities in Uruguay, download the new issue of InvestBA Privada.