The French competition authority Autorité de la Concurrence has given its approval to Carrefour to acquire the French operations of retailer Louis Delhaize.
The authority conducted a thorough analysis and concluded that the merger is unlikely to create an unfair advantage in terms of Carrefour’s buying power for consumer goods, as the market share of Louis Delhaize’s former stores in France is relatively small.
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To maintain a competitive landscape for consumers, Carrefour has agreed to offload seven outlets to rival brands and end a franchise contract in favour of another competitor.
The deal stipulates that a shopping mall adjacent to one of the stores set for divestiture must also be sold.
The potential purchasers of these assets will require Autorité de la Concurrence’s endorsement.
The authority is also tasked with confirming that any buyer possesses the necessary expertise and financial strength to manage and expand the stores and shopping centre effectively over time.
The divestitures will encompass all elements essential for preserving the businesses’ operational viability, including retaining staff who were working at these locations prior to their acquisition by Carrefour.
Carrefour will initiate discussions with potential buyers to divest the stores, comprising of five hypermarkets and three supermarkets, with combined sales slightly exceeding €300m. It aims to complete the sale by the end of 2025, as reported by Reuters.
The regulatory approval follows Carrefour’s exemption obtained from the French competition authority in spring 2024 allowing it to finalise its purchase of Cora and Match stores in France.
In 2023, Carrefour struck a €1.05bn ($1.16bn) deal with the Louis Delhaize Group to acquire its Cora and Match banners in France.
Carrefour’s acquisition includes Provera, Louis Delhaize Group’s purchasing alliance for consumer goods in France, Delparef, which manages food retail stores under Cora and Supermarchés Match through its subsidiaries, and Galimmo, a real estate firm responsible for investing in, developing and managing shopping centres next to Cora hypermarkets.
