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France's Casino considers sale of GPA unit in Brazil, newspapers say

Credit: REUTERS/Eric Gaillard

French retail group Casino Guichard Perrachon is considering selling its roughly 41% stake in GPA, a major food retailer in Brazil, two major Brazilian newspapers reported late on Tuesday.

RIO DE JANEIRO, June 22 (Reuters) - French retail group Casino Guichard Perrachon CASP.PA is considering selling its roughly 41% stake in GPA PCAR3.SA, a major food retailer in Brazil, two major Brazilian newspapers reported late on Tuesday.

Paper O Estado de S. Paulo, citing sources familiar with the matter, reported that Casino had hired Brazilian investment bank BR Partners to sell its stake in GPA.

Newspaper Valor Economico, citing one source, said Casino was considering the GPA sale, but that it had not hired any banks or advisors. The paper said Casino has been considering such a sale for a significant period of time, but that any operation would depend on the interest of potential buyers.

GPA, Casino and BR Partners did not immediately respond to requests for comment on Tuesday morning.

GPA told Valor and O Estado de S. Paulo that it "does not have any information regarding the subject." Casino declined to comment to both the papers.

Casino has reorganized its Latin American assets in recent months in order to improve governance and simplify the structure of its business in the region.

Earlier in June, Reuters reported that GPA was considering spinning off its Colombian Almacenes Exito SA IMI.CN unit.

(Reporting by Gram Slattery in Rio de Janeiro and Paula Laier in Sao Paulo, editing by Louise Heavens)

((gram.slattery@thomsonreuters.com; +55-11-95057-1453))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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