The ongoing spat between French retailer Casino and Brazilian tycoon Abilio Diniz has taken a twist with the company seeking arbitration over the businessman’s role at food giant Brasil Foods.
Casino claims Diniz, a fellow investor in Brazil’s largest retailer CBD, has broken an agreement between the two shareholders by becoming chairman of Brasil Foods.
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The retailer also argues Diniz’s positions as Brasil Foods and CBD chairman “conflicts with CBD’s interests in violation of Brazilian law”.
Casino said Diniz had refused to resign as chairman of the board at CBD despite what the French company called “the clear and permanent conflict” of serving in both roles.
Last month, a spokesperson for Diniz said the businessman had “no intention” of resigning as chairman of CBD, also known as Grupo Pao de Acucar, after taking the Brasil Foods job. The spokesperson could not be reached for immediate comment on Casino’s move to seek arbitration.
Casino and Diniz fell out in 2011 over the ownership of CBD. Diniz and Casino jointly ran CBD from 2005 until last year. The original deal between the two sides allowed Casino to take control of CBD in 2012 but, a year earlier, Diniz tried to merge CBD with Carrefour’s Brazilian unit – without informing his French partner. Casino sought arbitration but the plan ultimately failed and Casino became CBD’s sole controlling shareholder last June.
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By GlobalData
