Diniz consults CADE about GPA and BRF
Abilio Diniz has consulted Brazil's antitrust body, CADE, about the legal position if he remains as chairman of the board of directors at Pão de Açúcar (GPA) and the food company, BRF. He holds a minority stake in both companies.
The fact that he holds seniors positions in both companies has raised various issues for CADE, which will have to decide if Diniz's position at BRF could harm competitors. It is possible that BRF could be favored in contracts by Pão de Açúcar.
If CADE responds favorably, Diniz will be legally assured that he can remain in both positions.
The ruling is expected to create a precedent for other cases in which leaders hold positions in more than one company. The ruling will be one of the most important made by CADE in recent years.