Couche-tard, Carrefour nix tie-up talks: sources
Alimentation Couche-tard has dropped its 16.2-billion euro (US$19.6 billion) bid to acquire European retailer Carrefour SA after the takeover plan ran into stiff opposition from the French government, two sources familiar with the matter told Reuters on Friday.
The decision to end merger talks came after a meeting on Friday between French Finance Minister Bruno Le Maire and Couchetard's founder and chairman, Alain Bouchard, the sources said, speaking on condition of anonymity as the matter is confidential.
Couche-tard and Carrefour declined to comment.
Earlier on Friday, France ruled out any sale of grocer Carrefour on food security grounds, prompting the Canadian firm and its allies to mount a last-ditch attempt to salvage the deal.
“Food security is strategic for our country so that's why we don't sell a big French retailer. My answer is extremely clear: We are not in favour of the deal. The no is polite but it's a clear and final no,” Le Maire said.
Couche-tard executives are flying back to Canada after the failed talks, the people said. While discussions are on ice for now, they could be revived later if the government changes its position, they said.
Couche-tard was hoping to win France's blessing by offering commitments on jobs and France's food supply chain as well as keeping the merged entity listed in both Paris and Toronto, with Carrefour boss Alexandre Bompard and his Couche-tard counterpart Brian Hannasch leading it as co-ceos, one of the sources said.
The plan also included a commitment to keep the new entity's global strategic operations in France and having French nationals on its board, he said.
Couche-tard was also going to pump in three billion euros of investments to the French retailer — a plan that was widely backed by Carrefour, which employs 105,000 workers in France, its largest market, making it France's biggest private-sector employer.
France's opposition, with ministers shooting down the offer less than 24 hours after talks were confirmed, sparked disquiet in some business circles over how French President Emmanuel Macron decides which foreign investment is welcome and which is not.
Some politicians and bankers said the pushback could tarnish Macron's pro-business image, while others highlighted that the COVID-19 crisis had forced more than one country to redefine its strategic national interests.