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Aldi nearing deal to buy Leader Price: Reuters
Posted on Monday, 13 January 2020 15:10
Casino Guichard Perracho is involved in discussions to offload its France-based discount supermarket chain Leader Price to Aldi, in a transaction which could be worth up to EUR 750.00 million, sources close to the situation told Reuters.
Citing an insider, the news provider cautioned no deal has been signed off yet.
According to Reuters, the transaction is in line with Casino’s strategy to reduce its own liabilities and that of its parent company, Rallye, following the latter being placed under creditor protection in May 2019.
The retail group is attempting to shed its debt via sales and restructuring operations, the news provider noted.
Headquartered in Paris, Leader Price operates close to 800 discount supermarket stores across France.
The business was founded in 1990 and sells around 4,000 products throughout the country, including over 3,000 of its own range and more than 300 major brands.
Casino declined to comment, while Aldi did not respond to Reuters’ request for a statement.
The potential sale of Leader Price is part of the vendor’s wider plan to deleverage the company amid a harsh business environment and increasingly stiff competition from online retailers such as Amazon, the news provider observed.
Back in June last year, it was reported that Casino was going to restructure its Latin American operations and simplify its cross-holding structure in the region.
As a result, the company would be able to control its businesses in Brazil, Colombia, Uruguay and Argentina via a 41.4 per cent stake in its Brazil-based retail and distribution division GPA.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 672 deals targeting supermarkets and other grocery store operators announced globally since the beginning of 2019.
In the largest of these, Companhia Brasileira de Distribuicao, via Sendas Distribuidora, agreed to buy Colombia-based Almacenes Exito for CLP 4.46 billion (USD 6.22 billion).
© Zephus Ltd