Carrefour hires advisor to evaluate potential USD 1bn sale of Chinese unit - report
08 MAY 2019
Carrefour [EPA:CA], the French retailer, is evaluating options for its Chinese division, following the footsteps of other peers who have decided to embark on similar exits from the country in previous years, according to a newswire report. The Bloomberg report on 8 May cited sources close to the situation.
A sale of the division is among the options being considered and Carrefour has hired an advisor for the deliberations, the sources cited in the report said. Carrefour has started approaching potential bidders.
Carrefour could fetch around USD 1bn for its entire Chinese division, but it might also sell a stake in the business or end up deciding not to pursue the sale altogether, the sources cited in the item said. The retailer has not taken any final decision, the report said.
According to a spokesperson from Carrefour, a Chinese division divestiture does not feature on its agenda, the Bloomberg report said.
Metro AG, the German retailer, is planning to offload majority of its Chinese division, said sources close to the matter, last week, the report said. The slow growth in the Chinese market, attributed to the growing number of online shopping customers, has resulted in sluggish expansion of the retail industry.
Carrefour's Chinese division saw its net sales decline by around 10% to EUR 3.6bn last year, as per the annual report of the company.
In January 2018, Tencent [HKG: 0700], the Chinese internet company, and Yonghui Superstores [SHE: 601933], the Chinese retailer, agreed to acquire a shareholding in Carrefour's Chinese division, the Bloomberg item said.
Link to original source.