Casino’s board has rejected the planned merger of Brazilian hypermarket and supermarket operator Grupo Pão de Açúcar – in which the retailer has about a 40% stake – with French competitor Carrefour.

On the back of the news, the Brazilian state development bank said it was pulling its $3bn (£1.9bn) investment in the proposed tie-up. Casino is expected to go forward with its plans to completely take over Pão de Açúcar next year.