Carrefour: Auchan interested, Stifel confirms its advice

(CercleFinance.com) – Stifel maintains its purchase rating on Carrefour stock with a target price of 20 euros.

Yesterday, the title Carrefour gained 5% at the close, after Bloomberg had mentioned a new attempt of merger on the part of Auchan. In October, a first negotiation between the two entities did not bear fruit.

“We think Carrefour’s main shareholders and group management would likely support a decent-priced cash offer,” Stifel notes.

Investors are not insensitive to the situation: the title arrogates again 5% in Paris today.

As a reminder, just a year ago, the French authorities put a halt to negotiations with the Canadian Couche-Tard, believing that an agreement could undermine the country’s food security, particularly in a context of health crisis.

In view of these arguments, it now seems unlikely that the French authorities are hostile to a merger between two national players in the mass distribution – provided they are reassured on the social side.

At the time, negotiations with Couche-Tard had started at a price of 20 euros / share for a 100% cash offer. Stifel understands that negotiations with Auchan in October had failed because the agreement was not 100% in cash. The price mentioned was then 21.5 euros, reports the analyst.

With less than 100 days of the presidential election, this file could potentially appear in the news of the campaign. It is also not impossible that other players will come forward in order to get closer to the French distribution giant.

Copyright (c) 2022 CercleFinance.com. All rights reserved.
The information and analyzes disseminated by Cercle Finance only constitute decision support for investors. Cercle Finance cannot be held liable directly or indirectly following the use of information and analyzes by readers. It is recommended that anyone who is not informed to consult a professional adviser before any investment. This indicative information in no way constitutes an invitation to sell or a solicitation to buy.