French supermarket group Les Mousquetaires, owner of Intermarché, is pledging to support rival Casino with as much as 1.7 billion euros. In return, Intermarché is taking over a large number of supermarkets and promises to invest in the group.
Option on additional stores
Casino is taking drastic measures to reduce its debt of 6.4 billion euros, ceding hundreds of stores (in several phases) to Intermarché, worth some 1.6 billion euros. According to trade magazine LSA, 180 stores are involved, but Casino would not confirm that exact figure.
The first batch of stores will be sold before the end of the year, the second at the latest within three years. A third round is currently still optional: Les Mousquetaires will have the option to take over additional stores with a turnover value of 500 million euros. Casino has already promised its employees that their jobs will be preserved.
Even more cooperation
Purchasing alliance Auxo, which the two retailers jointly established in 2021, will be extended by two years to 2028. The companies already purchase food, non-food and services together, but are now expanding the alliance even further: through Agromousquetaires’ 56 factories, Casino will now also co-purchase private label products, meat and fish.
Finally, Les Mousquetaires promise to (symbolically) enter Casino’s capital: in a forthcoming round of financing, the group will give 100 million euros. However, the partnership does not rule out another possible acquisition by Teract or by Czech retail investor Daniel Kretinsky. Meanwhile, Casino is also around the table with its creditors: the Paris commercial court opened a mediation procedure.