Casino wins round in Carrefour Brazil fight

French retailer Casino won a court order to search the offices of arch-rival Carrefour as part of an increasingly bitter row over turf in Brazil, court documents showed.

Casino and Brazilian businessman Abilio Diniz, its partner in Brazil’s top retailer, Grupo Pao de Acucar (GPA) , have been at odds since Diniz, also GPA’s chairman, contacted Carrefour without permission to discuss a possible tie-up.

The Nanterre court decision seen by Reuters showed Casino had requested Carrefour’s offices be searched by bailiffs earlier this month for evidence of the “existence and of the content of negotiations between Carrefour and Diniz”.

Of 150 documents seized during the search, the court said 22 were “directly tied to Carrefour/Diniz/Estater discussions” and would be retained by legal authorities.

“We are satisfied with this decision which legitimates the actions of Casino to protect its rights in France and Brazil,” a Casino spokesman told Reuters.

Carrefour declined to comment.

Last week, Casino increased its holding in Grupo Pao de Acucar by 3.3 percent to 37 percent, firing a warning shot to the Diniz group and to Carrefour.

A merger of Pao de Acucar and Carrefour’s local unit could help reduce fragmentation in fast-growing Brazil’s $230 billion retail industry, 60 percent of which is dominated by the top 10 players, and would give the combined company 28 percent market share, more than double that of Wal-Mart Stores Inc. .

Diniz’s move also led Casino to file for international arbitration against the Diniz group last month, saying discussions with Carrefour would flout the terms of the partnership.