Carrefour has finalised the acquisition of the Cora and Match banners in France from the Louis Delhaize group. This operation has consolidated Carrefour's position in the food distribution market in France, with 60 Cora hypermarkets and 115 Match supermarkets, mainly located in the Grand East and Northern regions of France, where Carrefour has historically had little presence.
The transaction was carried out 100 percent in cash, and Carrefour obtained a waiver from the French Competition Authority to finalise the transaction. The Authority must still decide on the merits and possible remedies by the end of the first quarter 2025.
Considering the operation's expected benefit for the final consumer and the solid geographic complementarity of the two Groups, Carrefour considers the competition issues limited. In the meantime, it will initiate its integration program and convert Cora hypermarkets under the Carrefour banner before the end of 2024.
Carrefour products will be available at both Cora and Match starting in September. Concerning Match, the Group intends to maintain and strengthen the banner, which enjoys substantial brand equity in northeast France, in parallel with Carrefour Market. The potential for synergies is revised upwards, reaching an additional contribution to EBITDA of €130m at an annualised rate by 2027 (compared to €110m previously).
Half of these synergies will be generated by an acceleration in store commercial performance following commercial investments, the introduction of Carrefour branded products, the development of omnichannel, and the deployment of financial and merchant services. The other half will come from cost optimisation, mainly through gains in direct and indirect purchases and the mutualisation of marketing and advertising costs.
The associated integration costs, mainly distributed between 2024 and 2025, are estimated at €250m (compared to €200m previously), including ~€150m in operating costs and ~€100m in investments (Capex).
“With the acquisition of the Cora and Match banners, Carrefour has been carrying out its largest operation in France in more than twenty years and is consolidating its leadership in food distribution in its domestic market. Cora and Match bring quality, profitable assets to Carrefour that are highly complementary to the existing portfolio and will, in return, benefit from our strong brand equity, the power of our private label products, and our growth in e-commerce,” said Alexandre Bompard, Chairman and CEO of the Carrefour Group.
“I want to pay tribute to the Bouriez family and the Louis Delhaize group, whose entrepreneurial spirit has permanently driven these wonderful brands, which we are honoured to take over. I also want to salute the commitment and know-how of the 22,000 employees joining us today, whose expertise will strengthen our business model.”
