On Monday, the 22nd of April, the French retailer Casino, headquartered in Saint-Etienne, said that they had agreed to sell a basket of their assets to Apollo global, a US asset management firm, at a deal worth up to $530 million (470 million euros).
According to Monday’s (April 22nd) announcement, the French retailer Casino would be selling a heavy portfolio of 12 Casino hypermarkets alongside 20 supermarkets to Apollo Global. Besides, the French retailer had also added that the proposed takeover would likely to take place by the end of July and at little as 80 percent of the value of those assets was expected to be paid by cash by then.
Casino group’s recent sell-off of a heavy portfolio seemed to be an attempt to ease its stockpile of debts and to deduce investors’ worries over the future of their financial position of Casino and its parent holding Rallye.
Besides, according to several market pundits, the recent sell-off had also been an indication of an intense price competition at the domestic market and the Casino Group had been facing steep pressure to grapple with the extent of intensifying domestic competition while drowning underneath a stack of debts.
Apart from that, a latest emerge of online players likes of Amazon.com Inc. had also been challenging the French retailer alongside its domestic peers such as Auchan and Carrefour.