Carrefour has announced that it has sold its 25% stake in its Middle Eastern joint venture to its partner in the region, Majid Al Futtaim (MAF), for €530 million.
Sale includes ‘strengthening of exclusive partnership’
Carrefour said that at the same time as the sale of its stake in the joint venture, the two companies were also strengthening the existing exclusive franchise partnership by ‘further extending its time horizon and expanding its scope’. The partnership has been renewed until 2025 and extended to new formats and countries.
At the end of 2012 the joint venture operated 50 hypermarkets and 44 supermarkets across 11 markets in the Middle East and North Africa, which will provide a strong foundation on which MAF can build on with its own strategy.
Carrefour continues to reduce its exposure to emerging markets
The sale of its stake in the Middle East and North Africa sees Carrefour continue to reduce its exposure to emerging markets and specifically a region that has previously been viewed as offering dynamic growth opportunities in the longer term.
MAF taking full control of the operations could enable it to devise a strategy that works across the region’s different markets and better target local shoppers. With the region becoming more competitive – driven by the growth of locally-based retailers like LuLu hypermarkets and the entry of international companies like Spar – allowing MAF to formulate a strategy that helps it to win could boost the Carrefour brand in the region in the long run.
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