Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Retail

French Retailer Casino Says It Is In Alliance Talks With Teract

By Reuters
Share this article

French retailers Casino and Teract have begun exploratory discussions that could lead to the combination of the two groups' distribution activities in France within a single entity controlled by Casino.

Teract shares gained 5.9% to €6.46 on the French stock market after Bloomberg News reported earlier on a possible tie-up between the companies.

That puts the value of the retailer, backed by billionaire Xavier Niel and which operates in both the food and the garden/pet sectors, at close to €450 million.

f'Exploratory Discussions'

'In response to rumours in the press, the Casino group confirms that it has begun exploratory discussions with Teract that could lead to the combination of the two groups' distribution activities in France within a single entity controlled by Casino,' Casino and Teract said in a statement.

They said the deal could also lead to the establishment of a newly created entity controlled by Teract shareholders that would be responsible for the supply of agricultural, local and short-cycle products.

ADVERTISEMENT

Both companies added that discussions were at a preliminary stage and there could be no certainty that any transaction will be concluded.

Casino shares rose 1.86% to €11.49 on Wednesday, giving the indebted retailer a market value of over €1.2 billion.

The company, which has been facing concerns over high debts and low cash flows, hopes to complete a €4.5 billion disposal plan by the end of 2023.

Read More: Casino's GPA Prepares To Spin Off Colombian Supermarket Operator Exito

News by Reuters, edited by by ESM – your source for the latest retail news. Click subscribe to sign up to ESM: European Supermarket Magazine.

Get the week's top grocery retail news

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.
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days