Casino Guichard Perrachon announces plan to become sole controlling shareholder of Brazil's Pao de Acucar, reducing the influence of the company's founding family
March 21, 2012
– On March 21, Casino Guichard Perrachon SA, a French retailer, announced its intention to become the sole controlling shareholder of Grupo Pao de Acucar ADS CBD, reducing the influence of the Brazilian retailer’s founding family, Reuters reported March 21.
According to a statement released by a public relations firm in Brazil on behalf of Casino, Casino indicated that it would assume control of the Wilkes holding company, which in turn controls Pao de Acucar. The statement also reported that Pao de Acucar chairman Abilio Diniz had been informed of Casino’s intentions.
A press representative for the investments of the Diniz family confirmed that Casino had the right to assume control of Pao de Acucar via an earlier shareholder agreement, and reported that Diniz would retain his position as chairman.
Analysts say that Diniz could potentially lose his influence in Pao de Acucar due to the rift with Casino.
Diniz is the son of Valentine dos Santos Diniz, the founder of Pao de Acucar.
Pao de Acucar is the largest retailer in Brazil.
The primary source of this article is Reuters, London, England, on March 21, 2012.