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UPDATE 2-Shares of Carrefour Brazil slump after surprise CEO change

UPDATE 2-Shares of Carrefour Brazil slump after surprise CEO change
From Reuters - September 22, 2017

SAO PAULO (Reuters) - Shares in Grupo Carrefour Brasil SA dropped the most since they went public in July, after Brazils largest diversified retailerunexpectedly replaced chief executive Charles Desmartis with a 33-year veteran of parent Carrefour SA.

In a Friday statement, Carrefour Brasil (CRFB3.SA) said Desmartis, who steered the company through Brazils largest initial public offering in four years, will be replaced by Nol Prioux effective Oct. 2. Desmartis agreed to part ways with Frances Carrefour, the statement said.

Shares of So Paulo-based Carrefour Brasil dropped as much as 4.5 percent to 16.21 reais, the lowest since Aug. 9. The stock had gained 13 percent between July 20 and Thursday.

The move is related to a series of management shuffles taking place at parent Carrefour, which earlier in the day created a 14-member executive committee to help revitalize the worlds No. 2 retailer. Carrefour warned last month that operating profit may fall 12 percent this year.

Prioux arrives in Carrefour Brasil at a moment of many challenges and opportunities, Abilio Diniz, the subsidiarys No. 2 shareholder and a member of parent Carrefours board, said in a statement.

The reshuffle comes about two months after IPO and heightening competition among Brazilian retailers, which have endured one of their toughest business cycles in the past three years as the economy plunged into a recession not seen in more than a century and unemployment rose to a record.

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