Home Stock France's Carrefour and Auchan end talks over $19.4 billion tie-up

France’s Carrefour and Auchan end talks over $19.4 billion tie-up

imageEconomy2 hours ago (Oct 11, 2021 05:31AM ET)

(C) Reuters. FILE PHOTO: The logo of French retailer Carrefour on shopping trolleys in Sao Paulo, Brazil, July 18, 2017. REUTERS/Paulo Whitaker


By Dominique Vidalon

PARIS (Reuters) -French retailers Carrefour (PA:CARR) and Auchan have ended exploratory talks over a possible partnership, a source close to the matter said on Monday, adding that a potential equity deal had looked too complex in terms of valuation and structure.

The discussions, which started in the spring, reviewed various scenarios ranging from equity tie-ups to asset swaps and technological partnerships, the source said.

It was unclear at this stage if there was potential for talks to be revived.

A second source familiar with the talks said Carrefour had broken off the talks but Auchan, which is owned by the Mulliez family, did not plan to make a hostile move for its rival.

The same source also said that in its latest proposal Auchan had offered Carrefour 21.50 euros per share worth 16.8 billion euros ($19.4 billion). That represented an upside of over 30% over its share price last week, with 70% payable in cash and 30% in shares of the future merged company.

Carrefour said in June it had started considering possible consolidation, divestitures or tie-ups of its foreign subsidiaries, but had not made a decision to sell any assets.

In January, Canada’s Alimentation Couche-Tard dropped its 16.2 billion euro ($19.6 billion) bid for Carrefour after the French government opposed the deal, citing food security concerns.

Carrefour shares were 0.03% lower at 16.02 euros as of 0812 GMT.

“We think there is potential for further offers from Auchan or at least strategic assets disposals,” Bernstein analysts said in a note.

($1 = 0.8648 euros)

Carrefour and Auchan end exploratory talks over potential $19.4 billion deal – source

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Subscribe here


Must Read