French retailer Casino has agreed to sell its 567 Leader Price stores in France, plus three warehouses, to discount rival Aldi in a deal with an enterprise value of €735 million, it said on Friday.
The sale of discount chain Leader Price marks the latest in a series of disposals by Casino as part of plans to cut debt and improve its financial position.
Casino has often struggled within the competitive domestic French market, where a price war among supermarkets has dented retailers' profit margins.
The company also said in a statement that, under the agreement, though it is selling the stores it will retain ownership of the Leader Price brand.
'Commercial Dynamics'
'With this agreement, the transferred Leader Price stores will develop under the Aldi banner and will benefit from the commercial dynamics of Aldi France,' the retailer said in a statement.
Casino shares have lost more than 19% of their value since the start of the year.
The sale is subject to approval by the relevant competition bodies, as well as employee representative groups.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
