The Canadian Couche-Tard‘s offer of €20 per Carrefour share was rejected by the French government, citing food security and employment issues. Carrefour, whose share price has fallen to €13, is one of the largest private employers, with 105,000 employees and a turnover of €80.8 billion in 2019. This takeover would have created the world’s 3rd largest retailer after the American Walmart and the German Schwarz Group, owner of Lidl.
According to the Wall Street Journal, this refusal shows to what extent the Covid crisis is exacerbating interventionism in Europe. Until now, the French government’s action had been limited to strategic sectors such as energy and defence. In the UK, the government proposed new legislation in November to strengthen its powers to block foreign takeovers of British companies. Protectionism is also on the rise in Italy, Spain and Germany, where company valuations are falling as a result of the epidemic, creating not always friendly takeover attempts.
Couche Tard is a leader of convenience with 14,500 mini-markets and service stations (Corner Store, Circle K…). 71% of its income comes from petrol. In 2019, it recorded a turnover of €48.5 billion for a net profitability of 4%. But its market capitalisation is almost double that of Carrefour!