Carrefour to become leading Retailer in Belgium

AVERY, France (1 August 2000) -- The French Carrefour Group has acquired GB, the leading food retailer in Belgium. Carrefour, which already owned 27.5% of the GB’s shares, bought the remaining shares for EUR670 million. GB comprises 60 hypermarkets, 73 supermarkets, 350 franchised supermarkets and seven convenience stores in Belgium and 27 supermarkets in Poland. GB has not been performing up to par for some time now. Last year it faced an operating loss of EUR 20.5 million. The other branches (mainly DIY and fast food restaurants) of the group to which GB belonged, GIB, were profitable (EUR 72.6 million in 1999). GIB’s most lucrative asset however is its real estate. Consequently, the sale of GB to Carrefour does not include the land or the buildings that house the shops. After the take-over Carrefour will pay rent for these to GIB. Next year, the name of the 60 hypermarkets will be changed from GB into Carrefour. Until further notice, the supermarkets and convenience stores will continue to operate under the name GB, which is a household word in Belgium. Depending on the European Commission’s approval, this acquisition will make Carrefour the leading retailer in Belgium. The French group also has a minority share in two other Belgian groups, Louis Delhaize (Cora) and Mestdagh. Since last year’s merger with Promodés, Carrefour has acquired the Spanish retailer Gruppo and the Greek group Marinopoulos, thus becoming market leader in those countries. Carrefour is the second largest retailer in the world. Last year their turnover reached EUR 52 billion. Wal-Mart is still by far number one with a turnover of EUR 136 billion in 1999. (AR)