French retail giant, Casino Guichard-Perrachon SA, has made a strategic move, selling its stake in Almacenes Éxito SA, a major player in Latin America‘s grocery and textile industry, for a whopping $400 million.
Casino, on a mission to slash its towering debt, has parted ways with its 34.05% share in the Colombian supermarket, joined by Grupo Pão de Açucar, a Brazilian affiliate, which divested its 13.31% interest in the venture.
France’s Casino Sells Stake For $400M : Financial Boost Amidst Debt Woes
The transaction, orchestrated with Grupo Calleja of El Salvador, signifies a pivotal step in Casino’s quest to stabilize its financial standing. The $400 million injection comes at a crucial time, with Casino grappling with a reported debt of €7.9 billion ($8.6 billion) as of 2023’s close.
Salvadorian Chain’s Ambitious Bid
Grupo Calleja, known for steering Supermercados Super Selectos, El Salvador’s leading supermarket chain, seized the opportunity in October to acquire Almacenes Éxito. The specifics of the deal were initially shrouded in mystery, as Calleja kept its cards close to the chest regarding the financial outlay for the Colombian retailer.
France’s Casino Sells Stake For $400M : Reshaping Casino’s Future
For Casino, this sale aligns with a broader strategy aimed at restructuring and revitalizing its operations. The conglomerate, led by Czech magnate Daniel Křetínský, has greenlit a €1.2 billion rescue plan while concurrently offloading 288 stores to competitors Auchan and Les Mousquetaires, fetching up to €1.35 billion in the process.
The Path Forward: Shedding Weight, Gaining Momentum
With Les Mousquetaires already taking possession of 61 Casino stores valued at €209 million, Casino is fervently steering towards its target of debt reduction and operational turnaround by 2025. This latest maneuver not only injects much-needed capital but also underscores Casino’s resolve to navigate through tumultuous financial waters and emerge stronger than ever.
