CarrefourSA of Turkey May Consider Migros Deal to Expand
CarrefourSA Carrefour Sabanci Ticaret Merkezi AS (CARFA), the Turkish grocer in which Haci Omer Sabanci Holding AS (SAHOL) bought a controlling stake from Carrefour SA (CA) of France, may consider buying Turkish retailer Migros Ticaret AS (MGROS) to speed growth.
“We will consider acquisitions for inorganic growth in the strategic plan we will prepare, including a Migros buyout,” Haluk Dincer, head of retail and insurance business at Sabanci Holding said in a news conference in Istanbul today. “I don’t think the possible acquisition of Migros will create any violation of competition law.”
CarrefourSA, based in Istanbul, is seeking to grow sales annually by 15 percent after Sabanci Holding agreed on April 30 to increase its stake to 50.8 percent. Sabanci is buying 12 percent of the unit from Carrefour of France for 141 million liras ($79 million).
Sabanci Holding, which has partnerships with E.ON AG, Citigroup Inc. (C) and HeidelbergCement AG (HEI), plans to expand its retail business. It also operates electronics retailer Teknosa Ic & Dis Ticaret AS (TKNSA), and the industry is one of the major growth areas of the conglomerate, Turkey’s second biggest after Koc Holding AS (KCHOL), Dincer said.
Shares of Migros, which is owned by a group of private equity investors led by BC Partners Ltd, rose as much as 4.7 percent to 24.35 liras in Istanbul and traded at 23.7 liras at 3:08 p.m., heading for a two-year high. CarrefourSA, which has just a 3 percent stake trading on Borsa Istanbul, fell 11.5 percent to 17 liras, heading for biggest decline since August 2011. Sabanci Holding rose 3.1 percent to 11.5 liras, a record on closing basis. Carrefour rose 3 percent to 22.58 euros in Euronext.
“We know CarrefourSA is under grown,” Dincer said. “We will do our best for fast and profitable growth.”
Sabanci and Carrefour may decide to sell shares of CarrefourSA in the stock market to increase its free float from 3 percent, Dincer said.
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