Casino monoprix
France's Casino to sell big stores to rivals Auchan, Les Mousquetaires
PARIS, Dec 18 (Reuters) - French retailer Casino said on Monday it had entered into exclusive talks to sell all of its big stores to Les Mousquetaires and Auchan Retail.
Casino, which has warned of likely losses for for its core French business, is racing to finalise a bailout to avoid bankruptcy early next year.
The deal to sell hypermarkets and supermarkets is based on a fixed enterprise value of billion euros ($ billion), excluding real estate, Casino said in a statement. The stores represent total sales for of around billion euros excluding VAT (excluding petrol), it said.
The sale would leave Casino with upmarket brand Monoprix as well as Franprix, which also focuses on city-centre stores.
"A group refocused on premium city-centre convenience stores will be more viable, as these are profitable and no longer burning cash," said Clement Genelot, analyst at Bryan Garnier.
Casino has been losing market share to sector leader E. Leclerc as well as Les Mousquetaires and U supermarkets, according to Kantar data, opens new tab. Les Mousquetaires owns French retailer Intermarche as well as DIY chains Bricorama and Bricomarche.
A new leadership team formed around Czech billionaire Daniel Kretinsky is set to take control of Casino, which was brought to the verge of default after years of debt-fuelled acquisitions and losing market share to rivals.
The deal remains subject to a binding agreement between parties, which could be reached before end of the first quarter of , Casino said.
"The proceeds will be used to support the planned financial restructuring, investment in the retained perimeter, and social support for the concerned employees," said Casino, which would retain control over its smaller shops.
Trade unions have said they fear Casino could be dismantled as its hyper- and supermarkets are sold. Casino said all employees of the stores bought by Les Mousquetaires and Auchan would be kept by the new ownership.
Trading in Casino shares, suspended since earlier on Monday at the company's request, will resume on Tuesday, Casino said.
The deal will be submitted subject to France's competition authority for approval, and should be finalised in the coming months, Auchan and Les Mousquetaires said in a statement.
The transaction is also subject to completing Casino's restructuring, Casino said in its statement.
Carrefour (thisisnl.nl), opens new tab and Lidl had also made a bid for Casino's big stores.
Casino employs 50, people in France.
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Reporting by Nicolas Delame, Helen Reid, Blandine Henault, Sudip Kar-Gupta, Geert de Clercq; Writing by Ingrid Melander; Editing by Silvia Aloisi and Tomasz Janowski
Our Standards: The Thomson Reuters Trust Principles., opens new tab
London-based reporter covering the European retail sector through a global lens. Focusing on companies including Adidas, H&M, Ikea, and Inditex and analysing corporate strategy, consumer trends, and regulatory changes, Helen also covers major supermarket groups like Ahold Delhaize, Carrefour, and Casino. She has a special interest in sustainability and how investors push for change in companies. Previously based in Johannesburg where she covered the mining industry.
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