Carrefour, the world’s second largest grocery company is set to buy the remainder of its Spanish unit, of which it already owns 79.7%.
The French retailer will buy the remaining 20.3% for a total of €920m (US$904m) as part of its expansion in Europe. In the last two years, Carrefour has made acquisitions in Belgium and Italy. Buying the remainder of the Spanish unit, Centros Comerciales Carrefour, is seen as the next logical step. Spain is Carrefour’s largest market after France and accounts for around 15% of revenue.
Minority shareholders in Centros Comerciales Carrefour will be offered three Carrefour shares for every ten shares held in the Spanish unit. Carrefour will have to provide 7.9 million shares if the shareholders accept the offer.
Analysts predict that the deal, which is expected to be finalised in December, will be beneficial to Carrefour in the medium term, reported Dow Jones International.