Czech Billionaire’s Consortium Gains EU Approval for Takeover of France’s Casino
A consortium led by Czech billionaire Daniel Kretinsky has secured approval from the European Union’s antitrust authorities to assume control of the debt-laden French supermarket giant, Casino.
The announcement came on Monday, marking a significant shift in the retail landscape and the end of a 30-year era dominated by 74-year-old Jean-Charles Naouri, who controlled Casino through his listed holding company Rallye, reported Reuters.
Under the restructuring deal, current shareholders will face substantial dilution, and Kretinsky’s consortium is set to acquire a commanding 53.7% stake in Casino’s share capital. The deal entails a substantial financial injection of 1.2 billion euros into Casino, coupled with a substantial reduction of the company’s debt by 6.1 billion euros.
This move comes as part of a broader strategy to revamp Casino’s financial structure and address its considerable debt burden. The plan, however, hinges on securing additional regulatory approvals, including a crucial green light from the French finance ministry under foreign investment rules. Moreover, the consortium seeks a waiver from the stock market regulator to circumvent the initiation of formal public takeover proceedings.
In a related development, Casino had announced on December 18 that it was in exclusive talks to divest all of its major stores in France, comprising 313 hypermarkets and supermarkets. The potential buyers identified in the talks are retailers Les Mousquetaires and Auchan Retail.
While this move is positioned as a strategic effort to streamline operations, trade unions have expressed concerns about the possible dismantling of Casino as these stores are divested. In response to the consortium’s takeover and the potential sell-off of the stores, trade unions have decided to escalate their protests. On Monday, they announced the issuance of a new strike notice, scheduled to commence on January 9 and persist until February 5.
Source: Reuters
Featured News
T-Mobile’s Acquisition of Ka’ena Corporation Receives FCC Approval
Apr 26, 2024 by
CPI
UK Regulator Announces Two New Senior Executive Appointments
Apr 26, 2024 by
CPI
Paramount Global and Skydance Media Near Merger Deal, Eyeing CEO Change
Apr 26, 2024 by
CPI
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI