Casino Moves Closer to GPA Control

French retailer Casino has made another move in its quest for sole control of Brazil’s Grupo Pao de Acucar (GPA), reducing Albilio Diniz’s influence on the board. Casino CEO Jean-Charles Naouri will on June 22 become chairman of Wilkes, the holding company that controls GPA, replacing founding family member Diniz, Casino says. Diniz could hold on to his position as GPA’s chair, though Naouri would be able to name most of the GPA board. Under a 2005 shareholder pact, Casino takes control of both entities from June by buying one common share in the holding company from Diniz. Diniz could then exercise an option to sell 1m shares in Wilkes to Casino if he is not content with the lack of influence over company decisions. Last week, Casino ousted Diniz from Casino’s board. Casino and its parent have been building up their position in GPA to guard against a possible merger between GPA and French retail rival Carrefour, which Carrefour attempted last year.