By Brazil Stock Guide – The Brazilian Administrative Council for Economic Defense (Cade) has approved the sale of a significant stake in the Pão de Açúcar Group (GPA) to the Coelho Diniz family. The deal involves the acquisition of 24.5% of Companhia Brasileira de Distribuição (CBD), which controls major retail brands such as Pão de Açúcar, Extra, Minuto Pão de Açúcar, and Mini. This transaction raises concerns that the Coelho Diniz family could eventually assume control of the company, surpassing Groupe Casino’s 22.5% stake in GPA, acording to Estadão’s eInvestidor.
The Coelho Diniz family, which operates Supermercado Coelho Diniz with 22 stores in eastern Minas Gerais, initiated its investment in the Pão de Açúcar Group discreetly, beginning with a 5% acquisition in February. By the end of August, their stake had reached 24.5%, positioning the family as a key player in the retail giant.
In its ruling, Cade stated that there is no overlap between the companies’ operations and no vertical integration, as both groups operate in different regions. Specifically, CBD’s supermarket presence in Uberlândia does not coincide with the Coelho Diniz stores in Minas Gerais. Additionally, the family does not supply products to supermarkets outside their ownership, mitigating concerns about market concentration.
The deal follows the Coelho Diniz family’s proposal to elect a new slate of candidates to Pão de Açúcar’s board of directors. Among the proposed candidates are André Luiz Coelho Diniz and several other key figures from the family’s business network, potentially influencing the group’s strategic decisions moving forward.
Leave a Reply