Groupe Casino Facing Possible Brazil Difficulties
Published on Jun 1 2011 8:55 AM in Retail
French retailer Groupe Casino has filed a request for arbitration with the parent family of Brazil's largest retailer, Companhia Brasileira de Distribuição, or CBD, a sign that relations have soured between the two companies. Casino has joint controlled CBD with the Diniz family for several years, yet in recent weeks, the family is believed to have been in talks with Carrefour over a potential tie up.
Casino is understood to have asked CBD to comply with its agreement. It first invested in the retailer in 1999 and currently owns 35 per cent of the company. It is understood that the Diniz family was in touch with Carrefour over a possible stock for stock exchange.
CBD operates the Pao de Acucar chain in Brazil, with more than 1,300 stores. (1 June)
© 2011 - ESM: European Supermarket Magazine