Groupement Les Mousquetaires and Groupe Casino have signed a protocol which will see the latter selling some stores to the former as both businesses aim to optimise their respective networks and extend their industrial and purchasing partnerships.
Stores to be offloaded include hypermarkets, supermarkets and convenience formats in France worth around €1.05 billion, excluding VAT (€1.15 billion, including VAT).
The disposal of stores will be conducted in two groups, with the first valued at €549 million and scheduled to be completed by the end of this year.
The second set is valued at €502 million, excluding VAT, and will be completed within three years at the latest, although there is scope for Casino to expedite the process.
After signing the binding agreement, Groupement Les Mousquetaires will make an initial lump-sum payment of €100 million to Casino, which would be deducted from the final price calculated on the market value of the assets.
Read More: Groupe Casino Enters Court-Backed Negotiations With Creditors
Additional Store Disposal
Moreover, Groupement Les Mousquetaires has also agreed to acquire an additional set of stores values at €461 million, excluding VAT. It can be executed within three years at the latest.
For this, Groupement Les Mousquetaires will pay Casino an initial lump-sum amount of €90 million, which would be deducted from the final price calculated on the basis of the market value of the assets.
All these sales will be made at market value, based on appraisals in line with practices in the food retail sector, and paid in full in cash, Casino added.
Other Highlights
The protocol will also see Groupement Les Mousquetaires and Casino are extend the duration of their current alliances (Auxo Achats Alimentaires, Auxo Achats Non-Alimentaires) by two years until 2028.
The retailers also plan to form a purchasing alliance in private-label food products and embark on a supply agreement from the seafood and butchery segments of Les Mousquetaires Group, based on the know-how of Agromousquetaires.
Read More: Top 10 Supermarket Retail Chains In France
© 2023 European Supermarket Magazine – your source for the latest fresh-produce news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
