A São Paulo court has issued an injunction halting the French retail giant Casino’s efforts to liquidate its remaining stake in GPA, the operator of the Pão de Açúcar supermarket chain. The decision, handed down by the 1ª Vara de Falências e Recuperações Judiciais, effectively freezes Casino’s ability to divest from its former Brazilian subsidiary, citing a tangible risk of "asset depletion" that could undermine future legal claims.
The ruling is a strategic victory for GPA, which is currently embroiled in an arbitration dispute with its former parent company. By suspending the financial liquidation of shares already sold and prohibiting new transactions, the court has prioritized the preservation of GPA’s rights ahead of arbitration proceedings scheduled to begin in May 2025. The judge noted a "probability of right" in GPA’s argument, suggesting that allowing Casino to exit the Brazilian market entirely at this stage could leave the French firm without sufficient local assets to cover potential liabilities.
This legal friction arrives as Casino undergoes a massive global restructuring to manage its significant debt load. While the French retailer has been aggressively offloading international assets to streamline its balance sheet, this injunction complicates its exit strategy from South America. For GPA, the move serves as a defensive maneuver, ensuring that its former controller remains financially tethered to the region until their legal entanglements are resolved.
With reporting from InfoMoney.
Source · InfoMoney
