France's Carrefour (CARR.PA) and Brazilian retailer Grupo Pao de Acucar (PCAR4.SA) have been talking for more than a month about merging their units in Latin America's biggest economy, the newspaper Valor Economico said on Tuesday. The rivals could seek to merge their supermarket and hypermarket units, Valor reported, without saying how it got the information. Carrefour and the Diniz family, one of Pao de Acucar's two controlling shareholders, could agree to a share swap to seal the transaction, Valor said. Pao de Acucar shares fell on Tuesday, reflecting worries that the Sao Paulo-based retailer could bid for Carrefour's Brazil unit and encounter regulatory and minority shareholder opposition to a deal. Pao de Acucar shares shed 2 percent to 65.72 reais, their first decline in four sessions. Carrefour erased early gains and was flat at 30.27 euros in late-afternoon trading in Paris.
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