Yesterday, Couche-Tard, the Canada-based retailer announced its intention to take over the Carrefour group in a cash deal that would value the French retailer at a little over 16 billion euros.
Couche-Tard is specialized in proximity food retail with a historic presence in North America where it operates over 9.000 stores including gas stations that account for the majority of its revenues. The group is also present in Europe following acquisitions in Poland, Scandinavia and Ireland.
The Canadian retailer is financially very healthy and is taking advantage of this position to continue its M&A-based expansion although the move to acquire Carrefour can seem a little surprising. Indeed Carrefour's business is still very focused on hypermarkets and in geographies where Couche-Tard is not yet present.
The main hurdle to this deal is obviously the French government that quickly reacted to the news stating that it will oppose the deal and protect a strategic company that employs over 100.000 people in France.
On the other hand, historical shareholders of Carrefour including Bernard Arnault and the Moulin family have been open to a sale for some years now.
Interesting to see how this operation will come out and possibly trigger another round of M&A deals in Europe in the retail environment!
Thanks for listening!
more information:
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