The French antitrust authority has approved Carrefour’s acquisition of the French operations of Belgian retailer Louis Delhaize, with the condition that eight stores be divested to competitors.
The decision aims to maintain competitive balance in key local markets and safeguard consumer interests.
Carrefour, one of France’s leading retail groups, announced that it would commence discussions with potential buyers to sell the designated stores—five hypermarkets and three supermarkets—by the end of 2025. These stores collectively generate sales exceeding 300 million euros.
Acquisition Details and Market Implications
The acquisition grants Carrefour control over the Cora and Match store chains in France, along with Provera, the purchasing alliance of the Louis Delhaize group. The move aligns with Carrefour’s strategy to strengthen its retail footprint and achieve synergies of approximately 130 million euros by 2027.
The European Commission referred the examination of the acquisition to the French Autorité de la Concurrence due to its expertise in the local retail sector. While the authority ruled out competition concerns in the general supply market for everyday consumer goods, it identified potential risks in eight local markets where Carrefour’s market power would significantly increase, potentially reducing consumer choice and leading to higher prices.
Mitigating Competitive Concerns
To address the identified competition risks, Carrefour proposed commitments including divestitures and the termination of a store franchise agreement in favor of a competitor. Additionally, the company committed to divesting a shopping center in Charleville-Mézières to prevent excessive market concentration.
The eight stores set for divestiture are located in:
- Soissons
- Vichy
- Villers-Semeuse
- Rots
- Nancy
- Publier
- Les Pavillons-sous-Bois
- Charleville-Mézières (including the shopping center)
The French antitrust authority will closely monitor the divestiture process to ensure competition remains intact. Prospective buyers must demonstrate financial and operational capabilities to sustain and develop the stores while preserving consumer choice and price competitiveness.
Regulatory Oversight and Consumer Protection
The approval follows a thorough evaluation of Carrefour’s growing influence in the French retail market. The authority emphasized that while store divestitures are mandated, they do not equate to closures; rather, they involve a transition to new operators under different banners to maintain competitive pricing and variety for consumers.
Additionally, the Autorité de la Concurrence granted Carrefour an exceptional derogation from the usual suspension period, allowing it to finalize the acquisition before the official approval decision. This measure aimed to ensure business continuity, though it remained subject to the final regulatory ruling.
