{"id":104494,"date":"2021-01-14T13:22:47","date_gmt":"2021-01-14T13:22:47","guid":{"rendered":"https:\/\/fin2me.com\/?p=104494"},"modified":"2021-01-14T13:22:47","modified_gmt":"2021-01-14T13:22:47","slug":"french-finance-minister-stresses-food-security-in-opposing-carrefour-takeover","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/french-finance-minister-stresses-food-security-in-opposing-carrefour-takeover\/","title":{"rendered":"French Finance Minister stresses food security in opposing Carrefour takeover"},"content":{"rendered":"
PARIS (Reuters) – France\u2019s Finance Minister on Thursday said any takeover of French retailer Carrefour by a foreign company would be a \u201cmajor difficulty\u201d, as the government wants to preserve the country\u2019s food security and sovereignty.<\/p> Canadian convenience-store operator Alimentation Couche-Tard\u2019s near $20 billion takeover approach for Carrefour – continental Europe\u2019s largest retailer – has also raised French government concerns about job security at one of the country\u2019s largest employers.<\/p>\n \u201cHaving Carrefour being bought by a foreign company would be a major difficulty for all of us\u201d, Bruno Le Maire said in an interview at the Reuters Next conference.<\/p>\n \u201cFood security is at the core of the strategic challenges of all developed nations\u201d, he said.<\/p>\n Labour Minister Elisabeth Borne underlined the political opposition to a takeover of Carrefour by Alimentation Couche-Tard, calling for no change in the company\u2019s current shareholding structure.<\/p>\n \u201cI am in favour of not questioning Carrefour\u2019s current shareholding structure and allowing (the company) to pursue its strategy, so (I am) opposed to a takeover,\u201d Borne told Europe 1 radio.<\/p>\n Shares in Carrefour pulled back following the government\u2019s opposition, after a 17% jump on Wednesday.<\/p>\n Shares were down 5.33% at 1121 GMT.<\/p>\n Morningstar analyst Ioannis Pontikis said the market was probably pricing in the low likelihood of the deal going through due to the political hurdles.<\/p>\n A source close to Carrefour said the company was surprised by Le Maire\u2019s comments, which the source said were premature.<\/p>\n \u201cWe are surprised by this reaction as we are at a very preliminary stage\u201d, the source told Reuters.<\/p>\n A source with knowledge of the matter also told Reuters it was too early to say the deal would not go through.<\/p>\n Paris spoke up in 2005 to protect French big business amid rumors that Danone might receive a takeover bid from PepsiCo Inc. The country has since tightened takeover rules to protect French companies deemed strategic, including under the presidency of Emmanuel Macron.<\/p>\n Couche-Tard on Wednesday made a non-binding 20 euros per share offer for the French grocery group, largely in cash. The Quebec-based company has given no further detail on its plans for the combined companies.<\/p>\n A source familiar with the discussions told Reuters that 20 euros per share was not enough but was a starting point for discussions. Initial contact between the two companies came at the end of last year and Couche-Tard sent its first letter in early January, the source said.<\/p>\n