French retailer Carrefour has secured a waiver from the French Competition Authority to finalise the acquisition of the Cora and Match banners in France.
The retailer reached an agreement with the Louis Delhaize group for the acquisition in July 2023.
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The strategic move bolsters Carrefour’s foothold in the French food distribution market, adding 60 Cora hypermarkets and 115 Match supermarkets to its portfolio.
These stores, primarily situated in the eastern and northern regions, account for approximately 2.4% of the market share in France.
The enterprise value of the acquisition stands at €1.05bn, encompassing the purchase of the premises of 55 hypermarkets and 77 supermarkets.
The transaction was conducted entirely in cash.
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By GlobalDataA final decision on the merits and possible remedies, which will be taken by the authority, is expected by the end of the first quarter of 2025.
The retailer expects limited competition issues due to the expected consumer benefits, such as price reductions, and the strong geographic complementarity between the two groups.
The integration process is set to begin with plans to rebrand Cora hypermarkets to Carrefour by the end of 2024.
Carrefour products will be introduced to Cora and Match stores from September.
The group has committed to maintain and re-inforce the Match brand, which holds significant brand equity in the northeast of France, alongside Carrefour Market.
The synergy potential from the acquisition has been revised upwards, with an expected additional contribution to earnings before interest, taxation, depreciation and amortisation of €130m annually by 2027, an increase from the previously estimated €110m.
These synergies will be realised through enhanced commercial performance of the stores, commercial investments, the introduction of Carrefour branded products, omnichannel development and the expansion of financial and merchant services.
Cost optimisation will contribute to savings, particularly through gains in direct and indirect purchases and the mutualisation of marketing and advertising expenses.
Carrefour chairman and CEO Alexandre Bompard said: “With the acquisition of the Cora and Match banners, Carrefour is carrying out its largest operation in France in more than twenty years and is consolidating its leadership in food distribution in its domestic market.
“Cora and Match bring quality, profitable assets to Carrefour that are highly complementary to the existing portfolio, and will in return benefit from our strong brand equity, the power of our private label products, and our growth in e-commerce.”
