Darty: Fnac unwilling to engage in struggle to the end with Conforama
Fnac, the French music, book and electronics giant, is not keen to participate in a protracted bidding war with retailer Conforama for UK appliances group Darty, according to the Journal du Dimanche.
The French-language weekly quoted several unidentified sources who suggested Fnac’s appetite for Darty, for which it had offered EUR 858m (GBP 681.45m), may not be as strong as it had been. It has, however, already filed its application with France’s competition regulator, the item noted.
Vivendi, the French entertainment giant, recently took a stake of 15% in Fnac. Vivendi has no interest in Fnac, the item noted quoting an unidentified Vivendi executive. While it would not object to an improved offer, it would not wish to be diluted to less than 10%.
Conforama’s enthusiasm for the rival retailer has not abated, the item noted. It quoted Alexandre Nodale, boss of the furniture group, itself owned by South Africa’s Steinhoff group, who said the buyer did not anticipate any strategic changes within Fnac.
Shareholders in Darty have until 2 May to take on or reject the Conforama proposal. Without attributing the projection to a source, the JDD said it is unlikely the 70% threshold for acceptances will be met two weeks hence. It also quoted a source close to Fnac who indicated the company would not get involved in a ridiculous bidding war.
Fnac’s trump card is the proposed synergies between itself and Darty, estimated in the EUR 100m range, with 45% saved in purchasing.
A late March Les Echos report noted that a person in the know about the competition issues involved said the Conforama proposal had yet to be notified. The source, however, claimed that about 50% of the Darty shops throughout France also have a Conforama within a 4 km radius. Conforama and Darty both sell white and brown goods, as well as consumer electronics products, the report added.
Source Journal du Dimanche (Fra