Brazilian tycoon Abilio Diniz will not resign as chairman of CBD, the country’s largest retailer, despite securing a seat on the board of local food group Brasil Foods.
A spokesperson for Mr Diniz told just-food today (10 April) the businessman has “no intention” of resigning from the chairmanship of CBD, also known via its trading name of Grupo Pao de Acucar.
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Diniz, who hit in the international industry headlines in 2011 over his spat with French retailer Casino over ownership of CBD, was this week elected president of the board of Brasil Foods.
In a statement, Diniz said: “I would like to thank the trust of the BRF’s shareholders that elected me today chairman of the board of directors of the company. I also want to congratulate my predecessor, Nildemar Secches, for his work in BRF, making it one of the largest companies in the country and in the world. I start today a new challenge in my life, and I am very happy and excited.”
In February, reports emerged Casino had asked Diniz to resign his position as chairman of CBD should he join the board of another Brazilian company. It is thought that holding both positions would create a conflict of interest because Brasil Foods is a major supplier to CBD.
Diniz, however, reportedly said there was no law preventing him sitting on the board of two Brazilian companies.
Diniz and Casino jointly ran CBD from 2005 until last year. 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. The plan ultimately failed and Casino became CBD’s sole controlling shareholder last June.
Casino did not return a request for comment on the appointment at the time of going to press.
