Auchan buys into Italian retailer La Renascente

5th November 2004, Comments 0 comments

MILAN, Nov 5 (AFP) - French supermarket group Auchan is to buy the food, home improvement and property assets of Italian department store chain La Renascente, partly owned by the Agenelli holding firm Ifil, the two groups said Friday.

MILAN, Nov 5 (AFP) - French supermarket group Auchan is to buy the food, home improvement and property assets of Italian department store chain La Renascente, partly owned by the Agenelli holding firm Ifil, the two groups said Friday.

The companies said in a statement that Auchan was to buy for EUR 1.063 billion (USD 1.368 billion) Ifil's stake in Societa Italiana Distribuzione Moderna, a firm recently created to allow the French group to take over the food operations of La Renascente.

Distribuzione Moderna comprises the Italian Auchan hypermarkets, SMA supermarkets, a 50 percent stake in the home improvement retailer SIB and 51 percent of the property company Gallerie Commerciali Italia.

La Renascente is owned by Luxembourg-registered firm Eurofind, which is jointly owned by Ifil and Auchan.

The deal is expected to close by the end of the year, the statement said, when Auchan will pay EUR 810 million. The remainder will be paid in instalments by mid-2005.

The company also said it will hold an auction for the sale of La Rinascente's non-food operations, managed by Lazard Italia.

An Ifil spokesman said the sale of non-food operations is expected to closed in the spring of next year.

Ifil recently announced plans to get out of La Renacente in order to invest in other sectors.

Italian financial newspaper Il Sole 24 Ore reported Friday that 20 investors are interested in La Rinascente, including private equity funds; retailers such as H and M, and Zara; and property groups including Beni Stabili and Pirelli and Company Real Estate.

The IFIL spokesman declined to comment on possible bidders or the value of the rump Rinascente.

© AFP

Subject: French News

0 Comments To This Article