Let’s see how for­eign deals play out

Finweek English Edition - - MARKETPLACE -

Spar re­sults were de­cent enough but Ire­land does not look awe­some. The gross mar­gin in Ire­land is bet­ter than South Africa, but af­ter op­er­at­ing ex­penses Spar’s left with al­most zero op­er­at­ing mar­gin. Ire­land is earn­ing eu­ros and has some new deals in place that should im­prove the sit­u­a­tion, while the an­nounced ac­qui­si­tion of Spar Switzer­land looks at­trac­tive. But I want all these deals to settle down be­fore de­cid­ing how great they re­ally are. Deals al­ways carry the risk of over­pay­ing, lack of ef­fi­cien­cies and the like, so let’s give it an­other year to see how the deals will re­ally work.

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