By Brazil Stock Guide – GPA (PCAR3) has asked an international tribunal to freeze the 22.5% stake held by France’s Casino, worth about R$ 340 million at current prices, as part of an escalating arbitration linked to a R$ 2.6 billion tax dispute. The retailer seeks to prevent the sale or transfer of 110,476,573 shares priced at R$ 3.08 each, arguing the move is necessary to preserve assets while the legal battle unfolds.
The request for interim relief was filed before the International Chamber of Commerce in March 2026. The arbitration traces back to a Brazilian federal tax assessment over goodwill amortization in corporate income taxes between 2007 and 2013. The disputed amount represents more than half of GPA’s disclosed tax contingencies. Casino, which controlled GPA until March 2024, has said guarantees it previously provided became unenforceable under its French court-approved restructuring plan.
The company said it sought to preserve its rights and guarantees within the arbitration proceeding.
Collateral Gap Exposed
The numbers underscore the imbalance. Casino’s R$ 340 million stake covers just over 13% of the R$ 2.6 billion in dispute. Even if GPA prevails in full, the blocked shares would represent only a fraction of potential recovery.
GPA’s capital consists of 490,796,962 voting shares. The Coelho Diniz family holds 24.6%, while Casino remains the second-largest shareholder at 22.5%. The remainder is dispersed among institutional and retail investors. As control shifted in Brazil, the dispute hardened into a cross-border confrontation.
The case now tests whether corporate guarantees survive a European restructuring and whether arbitration awards can be enforced effectively across jurisdictions. GPA states there is no immediate impact on liquidity. Still, with shares trading at R$ 3.08 and valuation subdued, investors face renewed questions about legal risk, asset protection and balance-sheet resilience.
If arbitrators grant the freeze, Casino’s ability to exit narrows. If denied, GPA risks losing a tangible anchor in Brazil before a final ruling. The fight has moved beyond tax accounting. It is now a high-stakes contest over enforcement, leverage and control.
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