Media reports said that after months of negotiations, Alexandre Bombard, head of Carrefour, resigned from the alliance with Auchan. Le Figaro newspaper reported that the decision was to be taken on Thursday by the Carrefour Strategy Committee on the recommendation of the president, who considered the potential deal with Auchan too complicated.
Neither Carrefour nor Auchan have commented on these reports.
On the other hand, Bloomberg reported, citing individuals who wish to remain anonymous, that French negotiations have been put on hold due to disagreements between shareholders of both companies regarding the valuation and structure of the deal.
Bloomberg sources said Auchan proposed a deal that would value Carrefour at about €21 per share, or about €16.6 billion ($19.2 billion). Carrefour’s share price was 16.03 euros on Friday. Carrefour’s board of directors and major shareholders believe the range from €20 to €21.25 is too low. The complex structure of the deal also proved to be an obstacle.
French newspaper Le Monde reported in late September that Alexandre Bombard of Carrefour was studying the possibility of boosting the sector, and that his group was in talks with the Molise family, which controls Auchan.
Carrefour announced in June that it had begun looking at the possibility of merging, selling or freezing foreign subsidiaries, but had not made a decision to sell the assets.
Reuters reports that in January, Canadian company Alimentation Couche-Tard (ATDb.TO) withdrew its bid to acquire Carrefour for 16.2 billion euros after the French government opposed the deal, citing food safety concerns.
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