Big Brazilian retail group to review deal for acquiring majority stake in top furniture chain

Big Brazilian retail groups to review deal

SAO PAULO — 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.

Grupo Pao de Acucar said in a securities filing that the agreement it signed with Casas Bahia Comercial Ltda. 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 Casas Bahia requested the review, but provided no further details.

Pao de Acucar said it had no further comment and repeated phone calls to Casas Bahia went unanswered.

According to Brazil’s leading business newspaper, Valor Economico, Casas Bahia wants to renegotiate several clauses of the agreement signed Dec. 4. The paper 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.

(This version CORRECTS name of newspaper to Valor Economico instead of Valor Economicor.)