French multinational retailer Carrefour has agreed to sell its stake in Cargo Property Assets to Argan, a company specialising in logistics real estate, media reports said. Cargo Property Assets was founded in 2016 and is largely focused on logistics real estate in France. Carrefour owns 32 percent stake in Cargo, while co-investor partners own one-third of the company’s distribution centers in France.
Cargo’s assets are valued at €900 million in total. With the sale Carrefour would receive about €290 million which combines both cash and Argan shares. The transaction’s completion with Argan depends on the latter’s shareholders and other customary conditions. After the transaction Carrefour would hold 5 percent stake in Argan.
Carrefour operates various types of stores including hypermarkets, supermarkets, convenience stores and the like. The company is set to open its first organic store in Belgium this week in Woluwe-Saint-Lambert. According to media reports, the company has also agreed to sell 80 percent of Carrefour China to Suning for €620 million. With that, Suning will become the major shareholder of the company. Currently, Suning is one of the largest non-government retailers in China.
Carrefour China has 210 large integrated supermarkets and 24 convenience stores in the Chinese mainland market. Carrefour’s decision to dispose shares are part of its ongoing efforts to strengthen its presence in French market where the competition with Amazon and Leclerc is quite intense. It is planning to dispose non-strategic property assets worth £500 million by 2022.