Carrefour shares set to rise after €60 million Bio c’Bon deal
The French supermarket chain could see its share price rise after its purchase of specialist distributor Bio c’Bon, with the plan to use the newly acquired business to help it refocus its food range towards organic produce.
Europe’s largest retailer, Carrefour, announced on Monday that it plans to acquire bankrupt specialist distributor Bio c’Bon for €60 million, with the aim to use the newly purchased company to assist it in revamping its food range more towards organic produce.
If its growth strategy is successful, Carrefour will likely see its share price rise as investors, with the stock climbing 1.2% higher on Monday following the deal announcement.
Carrefour closed at €13.52 per share on Monday, with the stock down 9% year-to-date.
Bio c’Bon deal will help Carrefour shift focus towards organic food
The Paris Commercial Court has decided to select the Carrefour Group's offer for the acquisition of the Bio c’ Bon banner. This strategic acquisition reinforces the group's ambition to become the leader in organic food and the food transition for all.
The Court also validated Carrefour’s social project, including its commitment to preserve the employment of more than 1,000 Bio c’ Bon employees, almost the entirety of the current workforce.
‘This acquisition will enable Carrefour to accelerate the development of its presence in the specialized distribution of organic products in urban centres, a growing sector, with a concept that is very complementary to the Group's existing banners,’ Carrefour said in a statement.
This strengthening in the organic stores comes in parallel with expansion in digital organic offering, with the acquisitions of Greenweez (2016), Planeta Huerto in Spain (October 2018) and Sorgente Natura in Italy (October 2019), the company added.
This transaction was subject to an exemption from the suspensive effect of control on concentrations and will be subject to review by the Competition Authority in the coming weeks.
Carrefour sees Q3 sales increase despite Covid-19 challenges
Europe’s largest retailer saw excellent sales momentum carry forward into its third quarter results (released 28 October), with the company recording a 8.5% rise in like-for-like sales – its best performance in at least 20 years.
‘Carrefour's sales in the third quarter reflect the excellent momentum underway in the Group, confirming the success of the Carrefour 2022 transformation plan,’ Carrefour CEO and chairman Alexandre Bompard said.
‘The exceptional growth in Brazil, solid activity in Spain and better momentum in France attest to the strength of our multi-format and omnichannel model. We remain mobilized to keep gaining commercial ground,’ he added.
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