The chief executive of Italian cooperative retailer Conad, Francesco Pugliese, has praised the group's acquisition of the Auchan Retail Italia business, saying that the fact that Italy is "buying back a piece of itself is great news".
Via Twitter, Pugliese explained that the Auchan acquisition is a "complicated operation" that will require public support to be successful.
"We have a project in place but we need the help of the country: partners, suppliers, customers," he added. "We believe in Italy, we need Italy to believe in us."
L’Italia che ricompra un pezzo di se stessa è una grande notizia. L’acquisizione Auchan è un’operazione complicata, abbiamo un progetto ma ci serve l’aiuto del Paese: dei partner e fornitori, dei clienti. Noi crediamo nell’Italia, serve che l’Italia creda in noi.
— Francesco Pugliese (@fpugliese_conad) May 15, 2019
Unlikely Support
Conad received support for the deal from an unlikely source, close rival Coop Italia, which issued a statement in which it said it 'wished Conad well with a complex and important task', echoing Pugliese's comment that it is 'good to see' a foreign operator be taken over by an Italian cooperative.
'Consumer cooperatives have been market leaders for 30 years, but above all they are leaders in commercial and value innovation, on food safety and the environment,' Coop Italia said.
On the increased competitiveness that should arise from the deal, Coop said that 'competition is a useful asset; the important thing is that it is healthy and in the interest of consumers. The positive challenges for Coop are welcome'.
Industry Voice
Elsewhere, the president of food industry representative group Coldiretti, Ettore Prandini, said that the deal was "vital for the enhancement of agri-food made in Italy".
Prandini added that the move represented a "strategic intervention for the country, carried out by a group that over time has maintained its commitment to enhancing the Italian spirit and territoriality of production".
He also noted that the deal marks a reverse of recent trends, in which Italian food businesses such as Galbani and Orzo Bimbo are now owned by French parent firms.
Deal Confirmed
On Tuesday, Auchan Retail confirmed that it was selling almost all of its Italian operation to Conad, following a review of the group's loss-making markets.
"The business was in great difficulties. We are leaving to Conad a financial situation that will allow it to succeed with its acquisition project," an Auchan spokesperson was quoted as saying.
Auchan Retail generated around €3.6 billion in Italy last year. The sale of the business to Conad is subject to approval from Italian competition authorities.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
