French retail giant Carrefour has grabbed 75 per cent stake in Indonesian retailer Alfa Retailindo in a deal worth US$70.7 million, as part of its strategy to reinforce its presence in ‘key growth markets’.
This move by Carrefour, which was the first international retailer to establish a presence in Asia in 1989, would enable it to consolidate its position in Indonesia as a leading food retailer.
The French retailer, which had the second largest sale of US$97.9 billion behind American giant Wal-Mart with US$345 billion, operates under four formats – hypermarket, supermarket, hard discount and convenience store.
Carrefour operates mainly in European Union, Brazil and Argentina, and also has stores in North Africa and Asia. The retailer is expected to enter India this year with the launch of first joint-venture hypermarket, and having shortlisted three Indian companies, it is expected to announce its partner this month.
“Carrefour has held discussions with a large number of retailers in India over the past year and has now shortlisted three of them. The final partner will be announced this month,” a spokesperson had told Indiaretailing and indicated that it is likely to coincide with the visit of French President Nicolas Sarkozy.
Though the name of the final partner is still under wraps, the spokesman said the French retailer has formed two companies, Carefour India and Carefour WC and C (wholesale cash-and-carry), which will oversee operations in India with its joint-venture partner.
Top executives of the company have been visiting India and engaged in talks with a large cross-section of Indian counterparts to select a partner.
