French retailer Casino has agreed to sell a portfolio of 12 Casino hypermarkets and 20 supermarkets to U.S. asset management firm Apollo Global Management in a deal worth up to €470 million.
Casino said the proposed transaction was to take place by the end of July, with 80% of the value of the assets expected to be paid for by then.
The company is in the process of selling assets in order to help cut its debts and ease concerns over the financial position of both Casino and its parent holding company Rallye.
Portfolio Acquisition
'The Apollo Funds will create a special purpose vehicle to acquire the portfolio in order to enhance its value and sell it on the market under the best possible conditions,' Casino said in a statement. 'The Casino Group will receive an interest in this new entity, enabling it to benefit from the value created by the transaction.'
Along with domestic peers such as Carrefour and Auchan, Casino faces intense price competition in its home market as well as challenges from online players such as Amazon.
Last month Casino raised its goal for the disposal of non-strategic assets to at least €2.5 billion by the first quarter of 2020.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
