Carrefour and Auchan end exploratory talks over potential $19.4 billion deal

By Dominique Vidalon

PARIS (Reuters) -French retailers Carrefour (PA:) and Auchan have ended exploratory talks over a potential partnership, a supply near the matter stated on Monday, including {that a} potential fairness deal had seemed too complicated by way of valuation and construction.

The discussions, which began within the spring, reviewed varied eventualities starting from fairness tie-ups to asset swaps and technological partnerships, the supply stated.

It was unclear at this stage if there was potential for talks to be revived.

A second supply aware of the talks stated Carrefour had damaged off the talks however Auchan, which is owned by the Mulliez household, didn’t plan to make a hostile transfer for its rival.

The identical supply additionally stated that in its newest proposal Auchan had supplied Carrefour 21.50 euros per share value 16.8 billion euros ($19.4 billion). That represented an upside of over 30% over its share worth final week, with 70% payable in money and 30% in shares of the long run merged firm.

Carrefour stated in June it had began contemplating potential consolidation, divestitures or tie-ups of its overseas subsidiaries, however had not decided to promote any property.

In January, Canada’s Alimentation Couche-Tard dropped its 16.2 billion euro ($19.6 billion) bid for Carrefour after the French authorities opposed the deal, citing meals safety issues.

Carrefour shares have been 0.03% decrease at 16.02 euros as of 0812 GMT.

“We expect there may be potential for additional gives from Auchan or a minimum of strategic property disposals,” Bernstein analysts stated in a notice.

($1 = 0.8648 euros)