Circle-K ups ante in push for Carrefour takeover

French finance minister Bruno Le Maire had said he was prepared to give a 'clear and definitive no' to a deal.

Circle-K's owner has not given up hope of landing French supermarket giant Carrefour despite mounting opposition from the French government.

Top executives from Circle-K owner Alimentation Couche-Tard are in Paris seeking to salvage a $20bn (€16.5bn) bid for French supermarket giant Carrefour, with investment plans and employment commitments as the French government escalates its objections.

The Canadian convenience-store operator plans to pump €3bn into Carrefour over five years, according to sources.

Other pledges are understood to include preserving jobs for two years, keeping Carrefour’s headquarters in France and maintaining stock listings in France as well as Canada.

Carrefour shares gave up some of this week’s gains after French finance minister Bruno Le Maire said he was prepared to give a “clear and definitive no” to a deal. Mr Le Maire previously cited concerns about a French supermarket chain falling into foreign hands, saying the country needs to maintain domestic control over its food supply. 

France recently beefed up its authority to block foreign takeovers.

“We have the legal instrument available to us,” said Mr Le Maire. “I’d rather not have to use it, but will if needed.” 

The finance ministry is ready to study the proposal once the Canadians officially present it. They said they need to assess its impact on jobs and the sector.

Bloomberg