French retailer Casino Group has confirmed that its board of directors unanimously decided to reject Carrefour’s approach to merge both the companies.
According to the company, Carrefour approached it over the last few days for a possible merger between the companies. Casino’s board of directors held a meeting on 23 September to discuss the offer.
In a statement, Casino Group said: “The board unanimously reiterated its entire confidence in Casino’s strategy for value creation based on its unique market positioning.
“Casino thus intends to take all necessary action to defend the group’s corporate interest, and its structural integrity, a key factor for the success of its strategy.
“The board of directors also acknowledged the barriers, in France and in Brazil, to a combination with Carrefour, especially in terms of competition and employment.”
Casino also noted that the market for its securities has been subjected to coordinated downward speculative manipulations of an unprecedented scale for the past several months, which might be the reason to reject the offer.
In July this year, Casino formed an alliance with three major retailers Auchan Retail, Casino Group and Schiever Group to develop a new purchasing platform.
Called Horizon, the new purchasing platform is aimed to reduce transactional negotiations and introduce innovative, balanced negotiation types.
Auchan, Casino and Metro will offer international services to the suppliers and will assist SMEs in their international development under International SME.