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

French Retailers Auchan, Intermarché In Buying Alliance Talks

By Reuters
Share this article
French Retailers Auchan, Intermarché In Buying Alliance Talks

Auchan and Intermarché said they have entered talks to form a joint purchasing alliance, a week after submitting a joint bid to buy the French hypermarket and supermarket stores that debt-laden rival Casino is seeking to offload.

The long-term alliance would cover the purchase of food products from national brands as well as the purchase of non-food products, Auchan and Intermarché said in a joint statement.

Casino said last week it has received 'preliminary indicative offers from several purchasers' for an unspecified number of hypermarket and supermarkets it had put up for sale.

Intermarché had already agreed to buy about 61 stores from Casino in May. It has a call option, exercisable within three years, for a second group of 72 stores.

Potential Candidates

A source close to the matter told Reuters that at this stage "most players on the French retail market", including E.Leclerc, had expressed interest in the sale process.

ADVERTISEMENT

Potential candidates for Casino's stores also include German discount group Lidl.

"The idea is to try to have something done in 2023," the source said of the timetable for bids.

Last week, Auchan Retail board member Serge Papin told BFM Business that Auchan and Intermarché had submitted a joint bid for all the stores Casino is looking to sell to raise cash.

The sale of the hyper and supermarkets, if completed, would sharply reduce Casino's size to some €8 billion in sales from €33.6 billion in 2022, halving its market share in France to around 3%, Barclays analyst Nicolas Champ estimates.

Read More: Kretinsky 'Pushed' France's Casino To Offload Stores Before Bailout: Report

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.