Carrefour is the largest food distribution company in Europe. It is worth almost 10 billion euros on the stock market, but it is not having its best moment, even though it is a company with an annual profit that exceeds 1.6 billion euros.
Two years ago, the French multinational’s market value was around 17 billion euros at a time when there was talk of a possible integration with one of its main competitors, Auchan, the parent company of Alcampo. However, this merger did not materialize and now the idea that Carrefour is studying a corporate transaction is once again being heard in the market, although it is not at all clear what it could consist of.
The company led by Alexandre Bompard is working with a team of advisors to design different options for the future, according to information published by the Bloomberg agency. Among them, the whole range of possibilities: from the acquisition of a competitor, to the merger, to the sale of assets, to the reorganization of your entire company or to the sale of divisions by country, for example your activity in Spain. It could even analyze the possibility of introducing a new shareholder, according to the American agency citing well-informed sources. Carrefour did not want to comment on this information and this is the same response it gave to elDiario.es.
Even though Carrefour is currently worth almost 10 billion euros, its real valuation would be closer to 25 billion, if debt is added, which would make any transaction one of the largest corporate moves in Europe in a sector where there are not many large operations like in other industries.
A sharing structure with changes
Carrefour has not had a stable shareholder base for some time, which could give rise to corporate operations. According to data communicated by the company, the majority of Carrefour shares are not in the hands of a major shareholder, but are listed on the market. This would make it easier for a financial investor or competitor to launch a takeover bid (OPA) for the distribution giant.
Its main shareholder is the company Galfa, which took a step back a few months ago and sold part of its Carrefour share portfolio. Galfa is controlled by the Moulin family, owner of Galeries Lafayette, one of the most renowned Parisian department stores. In April, Galfa sold 25 million shares as part of an operation valued at nearly 365 million euros, according to information published by one of its advisors in this movement. This leaves Galfa’s stake in Carrefour at 10.5%.
Also in the capital, until his death in February this year, was Brazilian businessman Abilio Diniz, who held more than 8.8% of Carrefour shares, which would now be in the hands of his heirs. Until 2021, another renowned French businessman, Bernard Arnault, owner of luxury giant LVMH, was also at Carrefour. She managed to hold almost 10% of the capital of the French group but, between 2020 and 2021, she placed her shares on the market.
Two failed merger attempts
Arnault’s departure from Carrefour’s shareholding practically coincided with two operations that would have increased the size of the French multinational. In January 2021, Canadian group Couche-Tard launched a bid for the supermarket group which valued the company at €16.145 million. Concretely, he proposed 20 euros per share. Today, each title is worth around 15 euros.
The North American company assured that it was a friendly offer aimed at creating a global giant, but it was directly rejected by the French government, which vetoed the operation because it was a key business. “Food security is strategic for our country and we will not give in to one of the major French distributors,” declared Bruno Le Maire, then Minister of the Economy.
A few months later, another possible operation emerged, which did not arouse as much political reluctance, but which ultimately did not take place either. The French press assured that Auchan was willing to buy Carrefour, to integrate the two activities. As it appeared at the time, the operation was not successful because the shareholders – Auchan is controlled by another family, the Mulliez – did not agree on the value of Carrefour shares.
It is not that during this time, Carrefour has remained idle. After the failure of the two merger attempts, Alexandre Bompard launched a strategic plan until 2026 which mainly planned to promote the distributor brand so that it goes from 33% of sales to 40%. A measure which was not applauded by the manufacturers. Carrefour’s decision to remove brands from its shelves was also not motivated by the fact that it understood that they were taking advantage of the inflationary spiral to skyrocket their prices even further. “We no longer sell this brand due to unacceptable price increases,” Carrefour explained regarding the withdrawal of products like Lays or Pepsi.
The second operator in Spain
One of the options that would be on the table of Carrefour management, although the company does not comment on its plans, would involve the sale of its activities in Spain. An activity that is going well.
Carrefour is the second largest operator in Spain, with a market share of 9.6%, according to Kantar. It is only behind Mercadona, although far from the position held by the Valencian group, which controls more than 26% of the market, according to the same analysis firm. Third is Lidl, with 6.4%.
Carrefour’s activity in Spain is working well, even if it is slowing down. Last year, at the height of food inflation, its revenues reached historic highs, up to 11.821 million euros. For this 2024, with inflation falling, it provided data at the end of September. Over these nine months, comparable turnover decreased by 0.8% and amounted to 8,513 million euros.
Despite this stagnation, Carrefour indicates in its presentation to investors that in Spain, it has noted “a clear improvement in activity” since September, which would translate into an increase in sales in the latter part of the year.
