Amazon strengthens partnership with French food retailer Casino Group
The e-commerce company announced that it is deepening its ties with French food retailer, leading to speculation from investors that are larger deal could be in the pipeline.
US-based Amazon (NASDAQ:AMZN) and French-based Casino Guichard Perrachon (Casino Group) (EPA:CO) have strengthened their existing partnership, with Amazon installing pick-up lockers across its stores and stocking more of the French company’s products on its e-commerce site.
The decision to deepen their partnership comes shortly after an earlier agreement was struck between Amazon and Casino Group’s higher end supermarket chain Monoprix in Paris, with investors speculating that talks between the two companies could lead to M&A activity in the future.
‘This announcement represents a new step in strengthening Casino’s omnichannel strategy to always be a little more in the heart of consumers’ lives,’ Casino Group CEO Jean-Charles Naouri said.
Amazon eyes European food footprint
Amazon declined to comment on market speculation, but after the company acquired US-based food retailer Whole Foods last year, investors believe that it could look to expand its footprint by buying a European food retailer.
The strengthening of ties between Amazon and Casino comes at a time when French food retailer has begun disposing of assets in a bid to reduce its debt to help calm investors concerns over its finances.
Casino share price slides following Amazon partnership extension
Despite the news, Casino Group’s share price fell by 0.5% on Tuesday morning, driven by Standard & Poor’s decision to slash its credit rating from BB Negative to BB Negative Outlook, putting the company closer to junk status.
Earlier this week, in a bid to address investors concerns about the strength of its balance sheet, Casino Group announced that it would sell 12 of its hypermarkets and 20 supermarkets to Apollo Global Management in a deal valued at €470 million.
Meanwhile, Amazon’s share price has climbed more than 1.38% on Tuesday, as investors grow excited about the prospect of the e-commerce company strengthening presence in France, its third largest market in Europe.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
European Central Bank meeting
Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
