Casino Guichard-Perrachon SA agreed to buy French supermarket rival Carrefour SA’s business in Thailand for 868 million euros
The 42 stores being acquired will add to Casino’s 111 stores in Thailand, which operate under the Big C Supercenter Pcl brand. The Saint-Etienne, France-based retailer generates about 6.3 percent of its revenue in Asia, compared to about two- thirds in France, according to data compiled by Bloomberg.
For Carrefour, the sale forms part of a plan to sell its businesses in Thailand, Malaysia and Singapore to focus on China and Indonesia. The Paris-based retailer said today that it didn’t envisage being able to occupy a leading position in the Thai market in the medium or long-term.
The price corresponds to 120 percent of the net sales of the business and a multiple of 13 times earnings before interest, tax, depreciation and amortization, Carrefour said.
“1.2 times net sales seems a relatively high valuation,” said Christopher Hogbin, an analyst at Sanford C. Bernstein in London. “That said, there are clear synergies” of about 30 million euros a year, he said by telephone. Hogbin rates both Carrefour and Casino “market perform”
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