Groupe Casino and Teract are discussing combining their distribution activities in France. We don’t see any material operational synergies if a merger takes place. We note the statement about the formation of a single entity controlled by Casino. This looks surprising as the market currently seems to be ascribing a negative valuation to Casino’s French banners (mainly due to high debt). Unless Mr Naouri is able to sign a lucrative deal with Teract, we see little value with any such business comb ....
