Newly formed French retail giant signs up FD

French retail giants Carrefour and Promodes, which this week announced they were merging to create the world’s second largest retail chain, have selected Financial Dynamics to handle their international and UK financial PR.

French retail giants Carrefour and Promodes, which this week

announced they were merging to create the world’s second largest retail

chain, have selected Financial Dynamics to handle their international

and UK financial PR.



Carrefour and Promodes’ friendly pounds 30 billion merger comes within

weeks of world leader Wal-Mart’s takeover of Asda and hot on the heels

of rumours that Asda was set to move into the French market. The deal is

widely expected to trigger a spate of mergers in the fragmented European

retailing sector.



Financial Dynamics has been briefed to promote the deal among the media,

analysts and investors in Europe, the US, Asia and Latin America. It won

the work last week after a referral, on the back of its existing

international work.



International managing director Hugh Morrison will lead the account,

reporting to Daniel Bernard, chairman of the combined group. Bernard was

previously chairman of Carrefour - the larger of the two parties.

Financial Dynamics’ team will work alongside the group’s French

financial PR agency, DGM.



Carrefour and Promodes’ merger creates a group with expected worldwide

sales of pounds 36 billion spanning Asia, Latin America and continental

Europe.



The new group will be dwarfed only by Wal-Mart in the world retailing

stakes. It will count almost 9,000 outlets including 680 hypermarkets -

a concept which Carrefour claims to have ’invented’. Its worldwide

payroll will count 260,000 staff.



Carrefour operates chiefly though its own brand chain, while Promodes is

an umbrella for retail brands including France’s Continent, Champion and

Shopi chains.



Both Carrefour and Promodes are part family owned: the former counts a

seven per cent family stake, while a majority of Promodes’ equity is

family controlled. Thirty-five per cent of the new giant will be

controlled by the families.



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