French retailer Casino says it is in alliance talks with Teract (updated)

Teract SA

01/02/2023 18:48

(Adds details of talks, statement by companies, share prices)
       PARIS, Feb 1 (Reuters) - French retailers Casino
 CASP.PA  and Teract  TRACT.PA  confirmed on Wednesday they had
begun exploratory discussions that could lead to the combination
of the two groups' distribution activities in France within a
single entity controlled by Casino.
    Teract shares gained 5.9% to 6.46 euros on the French stock
market after Bloomberg News reported earlier on a possible
tie-up between the companies.
    That puts the value of the retailer, backed by billionaire
Xavier Niel and which operates in both the food and the
garden/pet sectors, at close to 450 million euros ($491.13
million).
    "In response to rumours in the press, the Casino group
confirms that it has begun exploratory discussions with Teract
that could lead to the combination of the two groups'
distribution activities in France within a single entity
controlled by Casino," Casino and Teract said in a statement.
    They said the deal could also lead to the establishment of a
newly created entity controlled by Teract shareholders that
would be responsible for the supply of agricultural, local and
short-cycle products.
    Both companies added that discussions were at a preliminary
stage and there could be no certainty that any transaction will
be concluded.
    Casino shares rose 1.86% to 11.49 euros, giving the indebted
retailer a market value of over 1.2 billion euros.
    The company, which has been facing concerns over high debts
and low cash flows, hopes to complete a 4.5 billion-euro
disposal plan by the end of 2023.
 (Reporting by GV De Clercq and Benoit Van Overstraeten in Paris
Editing by Matthew Lewis)
 ((geert.declercq@tr.com;))