Will the engagement materialize into a wedding? The Casino distribution group and Teract, the listed company controlled by the cereal cooperative InVivo, announced on Thursday March 9 that they would enter into exclusive negotiations “in order to create the French leader in responsible and sustainable distribution”. And the ambition to reach an agreement “before the end of the second trimester”.
In the scheme of this future alliance, the two groups would share the entire food chain, from production to distribution, by being co-shareholders of two companies. They would thus consolidate all of their distribution activities in France, in a structure whose majority shareholder would be Casino. The group, whose current operating profit fell by 5.9% in 2022, had gathered, at the beginning of January, its activities in France in the holding company CGP Distribution France, and would bring more than 9,100 stores with its Casino, Franprix, Monoprix brands. , Naturalia, etc. Opposite, Teract owns garden centers and pet shops (Jardiland, Gamm Vert, Delbard, Jardineries du Terroir and Noa) and food distribution (Boulangerie Louise, Grand marché la Marnière, Frais d’Ici and Bio & Co).
In parallel, the actors would create a second entity, named Teract Ferme France and dedicated to “the supply of agricultural products, local and in short circuit”, which would be controlled by InVivo, the majority shareholder of Teract. 2MX Organic, the SPAC (financial vehicle listed on the stock exchange to raise funds) created at the end of 2020 by Moez-Alexandre Zouari, Xavier Niel and Matthieu Pigasse (individual shareholders of the World) joined forces a year ago with the agricultural and agri-food group InVivo to form Teract, a nebula in the sector eating.
Historical franchisee of the Casino group, Mr. Zouari has never hidden his desire to reproduce the model of the Grand Frais brand, whose founder is also a shareholder in the company which supplies its stores with fruit and vegetables, fishmongers and dairy products. The new set of Casino and Teract will allow “the establishment of common supply chains with agricultural cooperatives in order to improve the proximity and traceability of products “from farm to plate””the two groups said.
To develop, they intend to expand the round table and lead “discussions with a number of investors” For raise approximately 500 million euros. The percentages of each in the new companies will still have to be defined in detail, and above all the weight of the partners in the new entity once their debts have been reintegrated into the calculations (the relative parities of Casino and Teract on the purely operational part being respectively 85 % and 15%).
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