Couche-Tard CEO would love second shot at bid for Carrefour
MONTREAL Alimentation CoucheTard would revive its US$20-billion bid for France's Carrefour if the Canadian convenience store operator saw a change in the French government's stance on the proposed deal, its chief executive said on Monday.
Couche-Tard dropped its surprise bid for the European retailer over the weekend after the plan ran into opposition from the French government.
Some French politicians said the issue was a matter of national food safety.
“We'd love to do the transaction ... if we got signals that the environment could change or would change from the French government or other key stakeholders,” Brian Hannasch told an analyst call.
News of the approach from Couche-Tard, which operates convenience outlets and fuel stations, broke only last week but unravelled swiftly in the face of opposition from French politicians including Finance Minister Bruno Le Maire.
The companies said they had decided instead to examine opportunities for sharing practices on fuel purchases, partnering on private labels and distribution in overlapping networks.
“This is a better approach. We lose neither control nor food safety and opening partnerships that can be fruitful for Carrefour as well as for its Canadian peer,” Le Maire told RTL radio.
Despite its opposition to the takeover, France remained open to foreign investments and remained “the most attractive country in Europe for foreign investments,” he added.
Sharesin Carrefour closed down 8.9 per cent in Paris to 15.46 euros on Monday as the prospect of the offer evaporated.
Couche-Tard shares rose about one per cent Monday at the close. They were down nearly 11 per cent last week.
“In terms of politics, I think we went into this with eyes wide open knowing that this was a risk, and I certainly do believe that the pandemic has heightened the food security issue, particularly in France,” Hannasch said.
In a note to clients on Monday, Bryan, Garnier & Co retail analyst Clément Genelot blamed France's 2022 presidential elections as the “true barrier to the deal,” amid fears that the sale of the country's leading private employer could strengthen farright opposition to incumbent Emmanuel Macron.