Casino Group, TERACT, and Groupement Les Mousquetaires announced they had entered exclusive discussions to expand the existing strategic cooperation between Groupement Les Mousquetaires and Casino Group. The proposed collaboration aims to strengthen responsible and sustainable retail initiatives that boost farmers' revenue, as first announced on March 9, 2023.
The companies are considering a two-year extension of their alliances until 2028 and extending their work to the new company to be formed between Casino Group and TERACT, which Casino Group would oversee. The potential new partnerships between the new entity and Groupement Les Mousquetaires include a purchasing alliance in Private Label food products, a supply from Groupement Les Mousquetaires' Seafood and Butchery channels, and access for Groupement Les Mousquetaires to TERACT Ferme France's expertise in fresh produce channels.
The new entity could also transfer several points of sale from the Casino France perimeter to Groupement Les Mousquetaires, worth a minimum of €1.1 billion in turnover, including VAT. This would enable Casino labels to focus on target and priority regions and allow Intermarché to expand its national network. Groupement Les Mousquetaires could become a minority shareholder in the new entity, with InVivo and Groupement Les Mousquetaires considering a €300 million investment. Casino and TERACT's shareholders have initiated discussions with potential investors to raise an additional €500 million in equity.
These discussions will be subject to consultation with employee representative bodies, regulatory authorities, and the respective governments of Casino Group, Groupement Les Mousquetaires, TERACT, and InVivo. The project remains conditional on a binding agreement between the parties, which could be finalized before the end of Q2 2023.
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