France

Heavily indebted French supermarket group Casino has received expressions of interest for its hypermarket and supermarket stores, the company said on Monday, declining to name the bidders or number of stores it intends to sell, Reuters reported. Casino has been preparing to sell more supermarkets to Intermarche, a unit of Groupement Les Mousquetaires, or even put its remaining hypermarkets and supermarkets in France up for sale to the highest bidder, French daily Les Echos reported on Monday.

The French economy grew more sluggishly over the summer as production and exports slowed, suggesting tight monetary policy is squeezing industry in the country, the Wall Street Journal reported. The eurozone’s second-largest economy grew 0.1% between July and September compared with the previous quarter, after a more dynamic 0.6% increase booked in the prior three-month period, according to data set out Tuesday by national statistics agency Insee. Exports, which had boosted net trade and GDP in the second quarter, reversed path and slid 1.4% in the quarter, the data showed.

Indebted French supermarket chain Casino said on Monday it had agreed an initial deal to sell its stake in Latin American retailer Almacenes Exito to Grupo Calleja. Casino's board on Friday approved a pre-agreement to sell its entire stake in Almacenes Exito to Grupo Calleja, a leading grocery retailer in El Salvador, it said. Casino is in the midst of a restructuring after years of debt-fuelled acquisitions had brought it to the verge of default.

Bankers and private credit funds are working on a financing deal of around €1 billion ($1.05 billion) to back a potential buyout of French insurance broker Kereis as the sale process kicks off, Bloomberg News reported. A debt package of that size would equate to around five times Kereis’ approximate €180 million earnings before interest, taxes, depreciation and amortization. Insurance brokers have been a lucrative target for PE firms because of their recurring revenue streams, and due to the fragmentation of the industry.

French grocery delivery startup La Belle Vie is acquiring Frichti, another food delivery service that was placed under court-ordered receivership, TechCrunch.com reported. The court picked La Belle Vie’s offer over three other offers. This is yet another chapter in the tumultuous story of quick commerce and food delivery services in France and Europe. Frichti was started in 2015 and had raised around €100 million over the years to deliver ready-to-eat meals for the lunch break. With the COVID-19 pandemic, the company expanded its offering and started delivering groceries as well.

The CEO of French retailer Carrefour on Tuesday urged the government to delay a law putting a cap on promotions retailers can offer, warning that consumers have made massive cuts to spending on essential goods owing to high prices, Reuters reported. Carrefour Chairman and Chief Executive Alexandre Bompard, who is among French retail executives due to meet Finance Minister Bruno Le Maire on Wednesday to discuss cost of living issues, said he would ask for "a one-year moratorium on the application of the Descrozaille law" that limits promotions on beauty, hygiene and care products.

The French economy should show modest growth in the third quarter as industrial and services activity picked up slightly in July, the central bank said on Wednesday in its monthly business climate report, Reuters reported. "For the third quarter... we expect GDP to show moderate growth compared to the previous quarter," the Bank of France said. It added its latest estimate was broadly in line with its growth forecast released in June, when it said the economy was expected to grow by 0.2% in the third quarter.

French Finance Minister Bruno Le Maire said that billions of euros of promised tax cuts will be spread out gradually over several years as the government tries to reduce its budget deficit, Bloomberg News reported. President Emmanuel Macron has pledged to slash a further €2 billion ($2.2 billion) in taxes on households and had planned to complete the second half of an €8 billion reduction in a levy on industrial production, known as CVAE, in 2024.

In the race to win control for debt-laden supermarket operator Casino Guichard-Perrachon, the two bidders are working on how to charm creditors, the company and the government after laying out their initial plans, Bloomberg News reported. The groups — 3F, formed by banker Matthieu Pigasse, telecom billionaire Xavier Niel and retail entrepreneur Moez-Alexandre Zouari, and a rival composed of Czech investor Daniel Kretinsky and Marc Ladreit de Lacharrière’s Fimalac — have until Friday to improve their bids.