Couche-Tard in talks to buy Carrefour

Couche-Tard in talks to buy Carrefour

The Canadian retailer offers $19.7 billion for France’s largest store chain

The middle of the week came bearing news from some of the largest convenience stores in the world.

Canada-based Couche-Tard announced that it is willing to pay $24.35 a share for purchasing France's Carrefour. The offer is 29% premium over the closing price reported by Carrefour on Tuesday, pushing its valuation at $19.7 billion.

If the deal goes through, Couche-Tard could further expand its European presence, where it already has 2,700 outlets. But the potential merger already received a negative vote from the French government. Bruno Le Maire, the country's Finance Minister, declared that he opposes a takeover given that "What is at stake is the food sovereignty of the French people. So from this point of view, the idea that Carrefour could be bought by a foreign competitor, on the face of it, I am not in favor of this operation." The French government has the power to block the deal.

Even though the two of them are in preliminary talks, Carrefour stock price went up 15% following the news.

Sources: edition.cnn.com, Bloomberg.com

The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.