Fnac and Darty, two French electronics companies, have agreed to merge both companies into one. On Darty's request, Fnac will pay part of its acquisition in cash.
Largest in France
Darty shareholders will get 1 Fnac share for every 37 Darty shares or they can also get a cash payout if so desired. Fnac will set aside 95 million euro for those shareholders who prefer cash.
Based on its closing price on 5 November, Darty is now valued at 615 million pounds (859 million euro), which means that Fnac will have overpaid 47 % compared to Darty's value on 29 September when the first bid was tabled.
Fnac will become the largest electronics chain in France after this deal. Currently, it has some 200 stores in France, but will add another 400 from Darty, while it will also obtain the Vanden Borre and BCC chains.