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(Reuters) – Canada Alimentation Couche-Tard and European retailer Carrefour SA have decided to work on partnership opportunities after the failed buyout negotiations, the two companies said in a joint statement on Saturday.
Couche-Tard dropped its € 16.2 billion ($ 19.57 billion) offer on Carrefour after the French government opposed the deal, citing food safety concerns.
The decision to end the merger negotiations came after a meeting on Friday between French Finance Minister Bruno Le Maire and Couche-Tard founder and president Alain Bouchard.
“Food safety is strategic for our country, which is why we are not selling a large French distributor. My answer is extremely clear: we are not in favor of the agreement. The no is polite but it is a clear and definitive no, ”said Le Maire.
The Canadian firm had filed a non-binding letter of offer earlier this month to buy the European distribution giant at a price of 20 euros per share.
The companies said they decided to expand their discussions to examine opportunities for sharing fuel purchasing practices, private label partnerships and distribution in overlapping networks.
“The areas of cooperation discussed are in line with our five-year strategic plan, as well as our commitment to strengthen our core convenience and fuel businesses and seize opportunities in multiple related growth platforms,” said Brian Hannasch, Chief Executive Officer of Couche-Tard.
BFM TV reported earlier on Saturday that companies working on the basis of “industrial cooperation” could allow them to bypass a veto by the French government that ended the deal.
(1 USD = 0.8280 euros)
Report by Ann Maria Shibu in Bengaluru; Editing by Frances Kerry and Louise Heavens
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