Geant to rebrand as Carrefour after Majid Al Futtaim buys GCC franchise
dubai — Leading Dubai-based malls and retail operator Majid Al Futtaim announced on Thursday the acquisition of Retail Arabia, the GCC franchise owner of Geant.
The deal, the value of which was not officially disclosed but is estimated to be over $500 million (Dh1.84 billion), was inked between Majid Al Futtaim — which operates the franchise of French retailer Carrefour in the Middle East — and Retail Arabia’s parent company BMA International.
The acquisition includes 26 Geant hypermarkets and supermarkets in the UAE, Kuwait and Bahrain, as well as four Gulfmart supermarkets in Bahrain.
Geant, the fifth-largest hypermarket chain in the world and a dominant brand in the food retail sector in the Middle East, is part of Groupe Casino, one of the world’s largest French hypermarket chains. In 2005, the hypermarket was introduced into the UAE.
Majid Al Futtaim said all of the acquired stores including hypermarkets, supermarkets and convenience stores would be rebranded under Carrefour, the rival French supermarket chain it franchises in the Middle East and North Africa.
This will see Carrefour extend its leading position in the UAE by increasing its store count from 67 to 80, while in Bahrain and Kuwait, it will further establish the brand as one of the largest grocery retail operators by increasing its stores to 11 and eight, respectively.
Majid Al Futtaim has confirmed that all Retail Arabia employees will be retained.
In 2016, Bloomberg reported that BMA was planning to sell a controlling stake in Geant business worth up to $500 million.
Geant began its Middle East operations in 2001 with a store in Bahrain. The company also has stores Saudi Arabia and Kuwait.
Alain Bejjani, chief executive officer at Majid Al Futtaim Holding, said the acquisition is a major milestone for the company.
“We are open to further prospects, through both organic growth and opportunistic acquisitions, and will pursue these in line with our disciplined strategic and financial approach. Our ambition is to expand our physical as well as our digital presence, and reinforce our omni-channel offering,” said Bejjani. “By extending its reach, we will deliver these promises to more customers in more locations, while enhancing Majid Al Futtaim’s overall ability to fulfill its vision of creating great moments for everyone, everyday,” said Bejjani.
Majid Al Futtaim was advised by Perella Weinberg Partners on the transaction.
— issacjohn@khaleejtimes.com