Victory Seeks to Acquire Carrefour Israel, Merge Brands
Translated & summarized from Globes by baba
Victory supermarket chain owner Eyal Ravid is seeking approval to acquire a controlling stake in Carrefour Israel and merge the two brands, which would create one of Israel's largest food retailers. The Israel Competition Authority is reviewing the request, citing concerns about market concentration, and may impose conditions or reject the deal. The proposed merger would expand Victory to over 200 branches, potentially impacting competition with major players like Shufersal. The authority's decision is pending and could take months.
The story in 5 lines · by baba
- Victory owner Eyal Ravid seeks to merge Carrefour Israel into his chain, creating a retail giant.
- The Competition Authority must approve the potential merger due to market concentration concerns.
- The merger would expand Victory to approximately 210 branches from its current 67.
- Conditions for approval could include selling 10-16 branches in overlapping areas.
- The Competition Authority's decision is expected to take months, potentially impacting Carrefour's IPO.
Eyal Ravid, the controlling shareholder of the Victory supermarket chain, has submitted a request to the Israel Competition Authority that could significantly alter the country's retail food market. Ravid aims to purchase 30% of Global Retail, the operator of Carrefour in Israel, during its planned stock exchange listing this month. Electra Consumer Products, co-owned by Miki and Dani Zalkind, will sell at least 25% of its 49.9% stake in the French Israel Group, which holds Carrefour Israel.
In the first phase, Victory plans to acquire a controlling stake in Global Retail and is in discussions with institutional investors for a future merger. The second phase involves Victory merging Carrefour into its own operations, effectively phasing out the Carrefour brand in Israel and rebranding its stores under the Victory name. This move would expand Victory to approximately 210 branches from its current 67, positioning the merged entity as one of the largest players in the Israeli food market.
The Competition Authority is expected to scrutinize the request due to existing market concentration. Approval is uncertain, with possibilities ranging from conditional approval to outright rejection. The authority has requested information on both chains, including customer bases and geographic distribution, to assess potential impacts on competition, particularly in areas where both Victory and Carrefour have branches. A potential condition could be forcing Victory to sell 10-16 branches in overlapping areas to a competitor not present in those specific locations.
While the elimination of a food chain could harm competition, the merger could also strengthen Victory's competitive position against larger rivals like Shufersal. The authority's decision-making process is in its early stages and could take months, potentially delaying the merger beyond the upcoming IPO. Other major shareholders in Carrefour Israel include Nachum Biton (22%), French businessman Simon Pinto (15.1%), and The Phoenix (13%).