Fnac victorious battle out for the acquisition of Darty, Conforama has finally thrown in the towel Wednesday after months of fierce battle over the brand of appliances.
Conforama announced in a statement have waived ultimate outbid Fnac, offering 1.16 billion euros to buy Darty against 1.09 billion offered by the furniture chain, acknowledging his loss to the “agitator cultural. “
” the Board of Directors of Conforama confirms that its third offer raised to 160 pence for each share Darty is final and will not be raised “, said the group, which owns 20, 4% of the capital of Darty. Its CEO, Alexander Nodal, explained that a higher price does not “create more sufficient value for shareholders, employees and stakeholders Steinhoff” parent Conforama.
On Tuesday evening, the Fnac announced it had received the support of the majority of shareholders of Darty, following his final and ultimate redemption proposal Monday.
Fnac had acquired a very significant number of shares in the previous hours, amount to 29.73% of the capital, against 9.2% Monday noon. The retailer of cultural and technological products also ensured dispose of “irrevocable undertakings” from two major shareholders funds of Darty, Knight Vinke and DNCA, to also tender their shares to its proposal.
In recent gathering Darty 22.1% of shares, technically, the “cultural agitator” thus seemed able to become the majority shareholder in Darty, with 51.84% stake.
But for this he must officially file its improved bid from British stock market authorities. This will be done “in the coming weeks,” he said Tuesday.
When contacted by AFP Wednesday morning, Fnac declined to respond to the abandonment of his rival.
Darty was it not immediately available
-. unions “disgusted” –
the group’s unions have however already declared “sickened” and “ready to fight”, fearing cuts in staffing.
Fnac, the operational plan for Darty was not fully unveiled, said that his alliance with teaches appliance enable it to generate 130 million euros in savings, including through cross-trade deals, but also through “optimization of logistics and iT” and administrative functions. It is this last element that raises concern among employees. They wonder also “how will make Mr. Bompard (Alexandre Bompard, CEO of Fnac, Ed) to repay its huge debt to banks without social destruction.”
Fnac The victory ends weeks of a Homeric battle suddenly outbidding repeatedly with Conforama, both seeking to seize Darty to gain decisive competitive advantages especially against giants like Amazon or net CDiscount in a market of electricals highly competitive and recovery.
the confrontation started in September with an initial proposal of Fnac country in March by a first competing offer Conforama, had suddenly accelerated on 21 April. In less than 24 hours, Fnac and Conforama had multiplied the bidding, making the blaze valuation Darty.
Monday, Fnac had, in a final effort, put together one last time its proposal. The group offered to shareholders 170 pence a share Darty – which was worth 70 last summer – also offering an alternative equity
So it will eventually helped win the game. . With this acquisition, Fnac will thus be able to strengthen its diversification strategy, particularly in the connected objects and small appliances, to counter the decline of its traditional market, cultural products.
Consumers should they see gradually appear on Fnac products corners in Darty and vice versa, and will benefit from a common entertainment ticketing offers two distributors. The project proposed by Fnac plans to retain the identity of the two brands.
The vesting of Darty, however, remains subject to the approval of the Authority of the French competition, which reviews the file carefully since March 23. Its decision is expected around the summer, and could include several stores assignment requests, if too close institutions created a risk of monopoly to the new covenant.
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