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Bloomberg reports this morning that “Carrefour SA, the world’s second- largest retailer, said it will consider a proposal to merge its Brazilian assets with those of Cia. Brasileira de Distribuicao Grupo Pao de Acucar, setting up a power struggle with French rival Casino Guichard-Perrachon SA.

“The combination,” the story says, “would give Carrefour control over Brazil’s largest retailer.”

However, Bloomberg writes, “The plan may be thwarted by Saint-Etienne, France-based Casino, which jointly controls Pao de Acucar with the Diniz family and last week raised its stake in the Brazilian company to 37 percent. Casino filed for international arbitration against the Diniz Group after discovering its partner held talks with Carrefour.”

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