Carrefour teams up with CFAO for African expansion
The two companies said that they have signed to form a joint venture which will develop various store formats in eight countries in West and Central Africa. Carrefour will own 45% of the business while CFAO will hold the remaining 55% stake.
The joint venture will have the exclusive rights to open stores under the Carrefour banner in Cameroon, Congo, Ivory Coast, the Democratic Republic of the Congo, Gabon, Ghana, Nigeria and Senegal.
Carrefour is already present in Africa, with stores operating under its name in Egypt, Tunisia and Morocco, said a spokeswoman for the company.
The deal comes as Carrefour - the world's second-largest retailer after Wal-Mart Stores Inc. reorganizes its business around the world, selling assets in a number of countries in a bid to free up cash for operations closer to home and to expand in its other priority markets such as China and Brazil.
Meanwhile, Carrefour has also moved to bolster the presence of its name internationally by extending the reach of some partnerships with local franchisees.
Last week, the company announced the sale of its 25% stake in a Middle Eastern joint venture to local partner Majid Al Futtaim Holding. At the same time, Carrefour renewed its exclusive franchise with Majid Al Futtaim Holding until 2025, and expanded the scope of the agreement to include new countries and formats.
Source: www.euroinvestor.com
