Jean Charles Naouri, president of the Casino group, the second largest French retail company and one of the world's largest retail giants, has declared that he will take control of the Brazilian Pão de Açúcar group in 2012, in the name of the planned purchase option in the agreement with the shareholders. He also specified that he will not sell his shares "to Walmart or to anyone else". “We have waited 13 years to acquire Pão de Açúcar and it won't be now that we will sell it,” added Naouri.
Casino is the largest shareholder of Companhia Brasileira de Distribuição (CBD), the largest supermarket group in Brazil, with a 43,1% stake. But control is exercised together with the entrepreneur Abilio Diniz, through the Wilkes holding. This was created in 2005 and the agreement envisages that each of the two shareholders has a 50% stake. In the organizational structure of the group, Wilkes is at the top of the CBD which, in turn, controls all the companies of the Pão de Açúcar group (including the latest acquisition, Casas Bahia). In June 2012, Abilio Diniz will have to sell a controlling share to Casino, which will come to own more than 50% of the Wilkes capital, becoming the parent company of the entire Group. “It is necessary to respect the agreements. We also expect the same behavior from the other parties involved,” said Naouri. The chairman also confirmed that the Wilkes board meeting scheduled for Tuesday, August 2, is cancelled.
In the last weeks, Naouri objected energetically to a merger project between the Brazilian CBD group and its French competitor Carrefour. The transition, which would have also involved the National Development Bank (Bndes), was instead defended by the French partner, Abilio Diniz, who appears to have negotiated with Carrefour behind Naouri's back. The president of the French group has opened two arbitration proceedings against Diniz and transactions with the global retail giant have stopped. But this armistice did not end the clash between the two: Naouri says he trusts the management of CBD but does not comment on the single Diniz. Casino does not appear to be intent on retracting the arbitration against the Brazilian businessman.
Casino's half-year report disclosed a few days ago demonstrated the importance of emerging markets for the group. Revenues from international operations increased by 55%, accounting for more than half of the group's total revenue for the first time.
Casino sales in the South American country grew by 61,5% in the second quarter. However, net income saw a 23% fall from last year, following a price cut to attract more customers. "Casino's mixed results confirm how difficult the French market continues to be," said an analyst at Espírito Santo bank. “The development of international affairs remains fundamental, but uncertainty reigns with respect to the situation in Brazil”.
Source: estadao, challenges, fox business
