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Carrefour divesting Cargo to Argan
Posted on Thursday, 11 July 2019 13:30
French supermarket operator Carrefour has signed on the dotted line to sell its real estate subsidiary, Cargo, to Argan. Completion of the deal is expected to occur by the end of 2019, subject to approval from the buyer’s shareholders, among other conditions. Under the terms of the transaction, the vendor will receive around EUR 290.00 million as consideration. Of this amount, around 80.0 per cent will be in the form of cash, while the remaining 20.0 per cent will be in the form of Argan stock. As a consequence, Carrefour will own around 5.0 per cent of the acquiror upon closing. The deal’s total valuation is EUR 898.00 million. Carrefour said the decision to offload the business is in line with its objective of divesting EUR 500.00 million worth of non-strategic operations, as part of its 2022 plan. The supermarket operator owns 32.0 per cent of Cargo, while the group’s co-investors will also sell their stakes in the deal. This is not the only asset that sale that could be on Carrefour’s agenda this year; in May, people in the know told Deal Street Asia the company was considering divesting part of its Chinese business. Cargo was established in 2016 and is engaged in the firm’s logistics real estate in France, owning around a third of its distribution centres in the country. Carrefour operates more than 12,000 stores across more than 30 countries and claims to be one of the world’s leading food retailers, with a customer base numbering 105.00 million and over 360,000 employees. According to Zephyr, the M&A database published by Bureau van Dijk, the largest deal targeting a real estate company to have been announced worldwide since the beginning of 2019 is worth USD 2.70 billion. That transaction took the form of an acquisition as Park Hotels & Resorts agreed to acquire hotel-focused firm Chesapeake Lodging Trust. © Zephus Ltd