TURKEY: Carrefour "in Migros talks over local venture"
By Dean Best | 1 October 2012
Carrefour is reportedly in talks to combine its venture in Turkey with local rival Migros Ticaret.
Bloomberg Friday (28 September) reported Carrefour and Migros were in "early" talks over a possible combination of the two businesses.
Carrefour operates over 240 stores in Turkey in a venture with local conglomerate Sabanci. Migros, owned by private-equity firm BC Partners, has 840 outlets.
When contacted by just-food, Carrefour declined to comment. Migros and Sabanci could not be reached for comment.
Bloomberg said Carrefour and Sabanci have a right of first refusal if one tries to sell its part of the venture. Carrefour has a 58.2% stake in the venture. Sabanci owns 38.8%. The remaining 2.2% is floated on the Turkish stock exchange.
There has been speculation over Carrefour's future in Turkey, where it runs over 240 stores
In August, Carrefour CEO Georges Plassat indicated the world's second-largest retailer indicated it would reconsider its position in Turkey and focus on a select group of international markets.
There have been rumours Carrefour and Sabanci have fallen out over the performance of the venture, called CarrefourSA.
In July, four CarrefourSA directors, including Sabanci executive Haluk Dincer, resigned. Dincer said Carrefour had not provided the "necessary support and assistance" to the venture.
Earlier this month, the chairman of Sabanci told CNBC the venture had not met expectations.
"We should not destroy value; we are here to create value. We are not happy with the performance of our joint venture and they are not happy with the performance. I'm sure we will find an amicable solution," Guler Sabanci said.
Sectors: Emerging markets, Mergers & acquisitions, Retail
Companies: Carrefour, Migros Ticaret
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