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)

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

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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

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