He didn’t say it once, but three times. History that we understand well. Mainly near Laval, Quebec. Bruno Le Maire, Minister of the Economy and Finance, said on the set of our colleagues from C to you, Monday January 14, in full promotion of his book, that he was not a priori “favorable” to a merger between the Carrefour group and the Canadian Couche-Tard. The second offers the first 20 euros per share – the French giant pointed to 15.47 euros on January 12 at the close of the stock market.
But which fly has stung Bruno Le Maire? It’s simple, he explained, there is “a decree on the control of foreign investments in France which allows us to give or not our agreement to operations of this type.” And to recall the strengthening of this provision, within the framework of the Pacte law, to protect the food security of the French. Because, according to the Minister of Finance, Carrefour is an “essential link in the food security of the French, in food sovereignty”. He goes so far as to add: “The day you go to Carrefour, to Auchan, and there is no more pasta, no more rice, how do you do? “According to a government official,” either the company [Couche-Tard] go all the way, and that would cost him unnecessary money in advice; or she changes her mind. Generally, we issue our opinions orally, without formalizing them, and companies follow us. In this case, the company has been notified, we are not a priori in favor of this merger. It’s up to her to see… ”
Concretely, Bercy and especially the Minister of Finance have the power to control any operation in this sector and to oppose it outright. Or again, it would be a question of “putting pressure” on the potential buyer to obtain guarantees on employment – Carrefour being the leading employer in France. In 2015, Nokia, when acquiring the equipment manufacturer Alcatel-Lucent, said that the group would maintain 4,200 jobs in France. A promise not fully kept. At the same time, several large French groups have been involved in recent years in operations abroad, such as Alstom, which bought the Canadian Bombardier. In addition, French food distribution players have strong positions abroad, particularly in Brazil, where Carrefour and Casino dominate the market. It should also be noted that Carrefour, caught up with the difficulties of the sector, has closed several stores and the dismissal of thousands of employees in recent years, without arousing the ire of the public authorities. Bruno Le Maire is walking on eggshells. Foreign investors, hardly fans of state interventionism, should not miss a thing in the future of the French government.
Did you say “friendly”?
Carrefour and Couche-Tard had underlined, in their respective press release on January 13, their intention to jointly study a “rapprochement”, and that the negotiation is only at a preliminary stage, qualifying it as “friendly”. But Bruno Le Maire assured to be wary of this term: “You never know what is behind it. It seems that Couche-Tard has mentioned an investment envelope accompanying the takeover of the group. According to our information, it would amount to 2 billion euros.
Carrefour operates, in more than thirty countries – notably in France, Spain, Italy, Belgium, Poland, Romania, Brazil, Argentina and Taiwan – around 12,300 stores, including hypermarkets, concept that Carrefour invented nearly sixty years ago, and claims 320,000 employees.
Thanks to multiple acquisitions, the Canadian, founded in 1980, developed on its land and crossed its borders very quickly, settling in the United States, Asia and Europe – Scandinavia, Ireland, Poland, the Baltic States and Russia. In all, 130,000 people would work for Couche-Tard. The latter relies on a network of 14,000 points of sale, mainly “convenience stores”, kinds of mini markets, with extended hours, where you can buy newspapers, cigarettes, coffee, etc. hot dogs, and possibly, gasoline. In short, it looks like the points of sale that can be seen in North American TV series. From there to making a whole film of this hypothetical comparison? Bercy has entered the credits.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
