Brazilian investor Abilio Diniz will stand down as chairman of Casino-controlled retailer CBD, bringing to an end disputes between the two over the business his family founded.
French retailer Casino, which took a controlling stake in CBD last year, has been pushing to oust Diniz since he took the role of chairman at Brazilian food manufacturer BRF this spring. 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. Casino had sought arbitration over the spat.
The row was the latest between Diniz and Casino, which fell out in 2011 over the ownership of CBD.
However, an agreement will bring to an end all legal proceedings that Casino and Diniz were bringing against one another, a spokesperson for the investor told just-food.
“It is win-win… [Casino] have cancelled the non-compete clause. The most important thing for Abilio is that he will be free to conduct business,” the spokesperson said.
Diniz has “no plans” for further investment in the Brazilian retail space, but intends to “concentrate on” his role at BRF, the spokesperson added.
Diniz and Casino jointly ran CBD, which runs Brazil’s largest retailer Pao de Acucar, from 2005.
In 2011, the shareholders fell out over the ownership of CBD. 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 the French retailer became CBD’s controlling shareholder last June.
Diniz will remain a shareholder in CBD. His shares in Wilkes, the holding company through which Casino and Diniz control the Brazilian retailer, will be converted to CBD common stock.
