French retail giant Carrefour has reportedly made a non-binding offer to acquire Alexander Zanadvorov’s 74.8% stake in Russian supermarket group Seventh Continent.
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Carrefour has approached Deutsche Bank about buying Zanadvorov’s entire stake in Seventh Continent, which the bank has as collateral against a loan, Russian newspaper Vedomosti reported citing banking sources.
However, one Paris-based analyst told just-food that he viewed a possible deal as “unlikely”.
“We should be very cautious about this information. It is quite impossible to enter the Russian market these days,” he said.
According to the analyst, if Carrefour were looking to acquire any companies in Eastern Europe, the retailer would have to pay “quite a high price” due to the depreciation of goodwill in the long term.
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By GlobalDataAdditionally, currency volatility is seen as a further barrier to the deal.
Carrefour was unavailable for comment as just-food went to press.
