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M&A Activity • Apr 15, 2021
1183_iss_2021-04-15_cc57eca0-4aca-421e-abb0-cb393498ac22.pdf
M&A Activity
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Press release Paris, April 15th, 2021
Intermarché and Casino Group forge a partnership in purchasing for leading brand products, and in digital
Intermarché and Casino Group today announced a five-year strategic partnership to capture the value of their complementary strengths.
The partnership covers three distinct areas: purchasing; the development of digital marketing and advertising services; and the food industry.
1. Purchasing
In the food industry, Intermarché and Casino Group are creating a central purchasing unit to be managed by Intermarché. Its mission will be to negotiate purchasing terms, on behalf of the two partners in France, for mass consumer goods from leading international brands– excluding private-label products, traditional agricultural goods and seafood, and well-known national brand products from small or mid-sized companies;
In non-food, Intermarché and Casino Group are creating a central purchasing unit to be managed by Casino. Its mission will be to negotiate purchasing terms, on behalf of the two partners in France, for technical products, paper goods and textiles;
Outside France, the two partners will create an organisation to market international services to large industrial groups operating in their territories (Europe and Latin America).
These three agreements cover a limited number of suppliers who are pivotal due to their size or geographical footprint and who, individually, have an outsized weighting in many product categories.
Both Intermarché and Casino Group will remain completely independent for all other sourcing and, more generally, in terms of marketing and promotions, as well as in the expansion of their store networks.
While the two banner networks will continue to compete, the creation of these three organisations will make Intermarché and Casino Group more competitive thanks to their complementary geographies and the different formats that make them unique. Intermarché and Casino Group are convinced that critical mass in purchasing for leading brand products will ultimately be advantageous for consumers.
2. In digital
Intermarché and Casino Group are creating a joint venture to market a retail media offering to food producers and their agents in France. This company will make it possible to benefit from an enormous volume of transactional data on digital media, leveraging technologies developed by RelevanC. The latter is a Casino Group subsidiary which develops service and targeting solutions that allow brands to unlock the full potential of their data.
These services are Intermarché and Casino Group's joint response to the predominant position of global players operating in France.
3. In the food sector
A cooperation agreement between Intermarché and Casino Group will allow Agromousquetaires, the food industry component of the Les Mousquetaires alliance (whose plants are all located in France), to compete for Casino Group contracts to supply its various private labels and thereby ensure a sourcing channel for products of French origin.
Intermarché and Casino Group will shortly submit these agreements to the French competition authority with a view to having them effective for 2022 negotiations.
INTERMARCHE
PRESS CONTACTS
Agence SOURCE RP
Charlotte Rabilloud - 06 62 03 28 34 / 01 85 78 66 32 - [email protected] Michelle Kamar - 06 09 24 42 42 / 01 85 78 66 31 - [email protected]
Groupe CASINO
ANALYST AND INVESTOR CONTACTS
Lionel BENCHIMOL – +33 (0)1 53 65 64 17 [email protected]
or
+33 (0)1 53 65 24 17 IR\[email protected] PRESS CONTACTS Stéphanie ABADIE - +33 (0)6 26 27 37 05 [email protected]
or
+33(0)1 53 65 24 78 [email protected]
Agence IMAGE 7 Karine ALLOUIS – +33(0)1 53 70 74 84 [email protected] Franck PASQUIER – +33 (0)1 53 70 74 91 [email protected]
In accordance with European Commission Implementing Regulation (EU) 2016/1055 of 29 June 2016 with regard to the technical means for appropriate public disclosure of inside information and for delaying the public disclosure of inside information, this press release was communicated to Casino's primary information provider on 15 April 2021 at 6:15 pm, Paris time.