Carrefour looks to sell operations in Asia, South America and Europe
Carrefour's businesses in Taiwan, Italy, Poland and Argentina may be soon for sale, as their performances are well below expectations. according to IGD Asia, Carrefour has hired Morgan Stanley to run the sale of the Taiwanese business, which is to commence after the summer. Carrefour has approached several potential buyers, including private equity firms.
The move comes just after Carrefour completed the acquisition of Wellcome from Dairy Farm in December 2020. Carrefour reported a 13%YoY (year-on-year) sales growth in Taiwan in first half of 2021, with strong performance from the newly acquired Wellcome stores. Carrefour currently operates over 350 stores in Taiwan.
Earlier this year, Couche-Tard launched a bid to buy Carrefour but the deal was rejected by the French government due to food security concerns. Nonetheless, that moment was decisive for shareholders to look deeper at performances in several markets. In recent years, investors have been dissatisfied with the performance of their Carrefour shares.
Carrefour may also consider selling its operations in Poland, Italy, and Argentina. The retailer has failed to reach the critical mass needed to become truly profitable in the two latter markets. Carrefour has confirmed that the group is indeed "reflecting on the critical mass of its international subsidiaries and on possible future consolidation, alliances or divestments."
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