Circle K Owner In Discussions to Possibly Buy Carrefour for $20 Billion
CANADA - The retail tides are changing this week as the possibility of a massive acquisition is now on the table. Canada-based Alimentation Couche-Tard, which owns the Circle K convenience store chain, officially announced that it is considering the buyout of France-based retailer Carrefour SA. If completed, the deal is expected to amount to $20 billion.
In a press release, Couche-Tard stated that it had submitted a non-binding offer letter to purchase Carrefour shares for roughly $24.29 each (€20.00). Further details have not been disclosed, although the purchase is expected to be made primarily in cash.
The deal is still highly hypothetical, but Couche-Tard states that it will leverage such transactions as a means to up its stakeholder value. Bloomberg reported that both Couche-Tard and Carrefour consider the final price of this transaction to be up in the air.
As Couche-Tard’s primary focus until now has been on the convenience store sector, we at ANUK speculate that this potential purchase signals a shift in focus to the grocery retail market.
How will the merging of these two powers impact the retail landscape as a whole? As more details come to light, be sure to stick with us at AndNowUKnow for the latest.