Abilio Diniz, a Brazilian tycoon, is in talks to buy Carrefour’s Brazilian unit, according to Reuters. The French retailer Carrefour is looking to sell its Brazilian assets to Diniz, who wants to take a 10 to 15 percent stake in the segment.
Diniz was once head of Carrefour’s competitor GPA SA and stepped down. After leaving, he bought a 6% stake in Carrefour. Diniz, will have management rights in the Carrefour’s Brazilian segment, which include cash and carry wholesale.
Diniz is one of the richest men in Brazil and is the son of the founder of GPA. He left the company when he had a disagreement with another head of the company, Casino Guichard Perrachon and Cie over talks with Carrefour which would have given the latter a stake in GPA.
If Diniz takes a stake in Carrefour, he could potentially compete with his family business, GPA in Brazil. It is possible that the Carrefour’s Brazilian unit could be spun out in an IPO.