The rumor mill is turning with some big possibilities in the retail sector. Canada-based Alimentation Couche-Tard, parent to the expansive convenience store chain Circle K, announced that it is considering buying up France-based retailer Carrefour SA.
While it is currently expected the move could mean an acquisition of up to $20 billion USD, Bloomberg reported that both Couche-Tard and Carrefour consider the final price of this transaction to be up in the air.
Aside from the sheer size of the deal, the reach of such an acquisition stirs questions of strategy as well. As Couche-Tard’s primary focus until now has been on the convenience store sector, we can’t help but speculate that this potential purchase signals a shift in focus toward the grocery retail direction.
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.
How will the merging of these two powers impact the retail landscape as a whole? As more details come to light, Deli Market News will bring you the latest.