Carrefour, a well-known France-based grocery retailer, has reached an agreement with the Belgian retail group Louis Delhaize to acquire the Cora and Match banners in France.

This deal, valued at €1.05bn ($1.16bn), is expected to strengthen the grocery retailer position in the food retail market within its own country.

Deal to boost Carrefour's standing in France

The retailer says the acquisition of the Cora and Match banners will have significant benefits for the company.

It is projected to generate potential synergies of €110m annually for earnings before interest, taxes, depreciation and amortisation three years after the completion of the deal.

The completion is anticipated to take place in the summer of 2024. Furthermore, the transaction is expected to enhance Carrefour's adjusted earnings per share right from the first year.

In 2022, Cora and Match together generated €5.2bn ($5.8bn) in sales.

These well-established brands are responsible for operating 60 hypermarkets and 115 supermarkets in France. With such an extensive network, they employ approximately 24,000 individuals across the country.

Carrefour's strategic move

Carrefour chief executive Alexandre Bompard expressed the significance of this acquisition by stating: "With the acquisition of the Cora and Match banners, Carrefour is announcing its first major acquisition in France in more than twenty years and consolidates its leading position in food retail in its domestic market."

This deal marks a milestone for Carrefour as it expands its presence in the French market and strengthens its foothold in the highly competitive food retail sector.