The Brazilian government's anti-trust commission on has approved an agreement between French retailer Casino Guichard Perrachon and huge Brazilian supermarket chain Companhia Brasileira de Distribuicao, reported the Dow Jones news agency.

The agreement, announced 3 May effectively raises the French company's stake in CBD to 34.3% from the previous 27.4%. The stake will gradually rise to 39%, under the accord.

"The agreement does not harm competition within the Brazilian supermarket industry," said the ruling by the Brazilian Anti-Trust Commission, or CADE.

Under the 3 May 3 deal, Casino and CBD's Brazilian managers agreed that the Brazilian stake holders would continue to effectively control and administer CBD under longtime Chairman Abilio Diniz.