Big Brazilian Retail Groups to Review Deal

Grupo Pão de Açúcar, Brazil’s largest retail group, said Tuesday it will review the terms of its planned acquisition of a majority stake in the country’s leading appliance and furniture chain at the request of the chain, The Associated Press reported.

Pão de Açúcar said in a securities filing that the agreement it signed with Casas Bahia Comercial late last year was still ”valid and perfectly effective.” But it said it will continue discussions aimed at reaching an understanding on the deal.

The filing said that Casas Bahia had requested the review, but provided no further details. However, according to Brazil’s leading business newspaper, Valor Economico, Casas Bahia wants to renegotiate several clauses of the agreement signed Dec. 4. The newspaper said Casas Bahia claims the deal undervalued its assets and wants to shorten the period it is barred from selling shares in the new company.

According to a statement issued by both companies at the time of the deal, Pao de Acucar would have five seats on the combined company’s board and Casas Bahia four. The statement did not disclose the value of the deal.