Carrefour Shares Slump As Proposed Couche-Tard Deal Unravels

By Dayeeta Das
Share this article
Carrefour Shares Slump As Proposed Couche-Tard Deal Unravels

French supermarket group Carrefour's shares slid by nearly 6% on Monday after a possible takeover by Canadian rival Alimentation Couche-Tard unravelled over the weekend.

Couche-Tard dropped its €16.2 billion ($19.6 billion) bid for Carrefour after the French government opposed the deal, citing food security concerns, though the two companies said they would continue to work on partnership opportunities.

Carrefour shares were down 5.8% in early trading, the worst performer on the SBF-120 index in Paris.

Chance Of Revival

Analysts at investment bank Citi said there was still a chance that Carrefour and Couche-Tard could revive talks at a later date while the possibility remains for Carrefour and domestic rival Casino to examine a merger deal.

"That said, the language and actions of Carrefour and Alimentation Couche-Tard suggest to us the parties would re-engage given even the slightest encouragement, whether now or in the medium term," Citi analysts wrote.


"Moreover, we continue to wonder whether the dalliance with Alimentation Couche-Tard might lead Carrefour and Casino Groupe to reconsider a merger as an alternative, driving both domestic and Latam synergies."

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.