Victory Chain Owner Seeks to Merge Carrefour Brand, Expand to 210 Stores

Translated & summarized from N12 by baba

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Hebrew · 2 newsrooms covering

Eyal Ravid, owner of the Victory supermarket chain, plans to acquire a 30% stake in Carrefour Israel and merge the two chains into a single entity with 210 branches. The proposal requires approval from the Israel Competition Authority, which is examining potential impacts on market competition. If approved, the Carrefour brand would be phased out in Israel, with its stores becoming Victory branches, significantly expanding the latter's market presence.

The story in 5 lines · by baba

Victory owner Eyal Ravid seeks to merge Carrefour Israel into his chain, creating 210 branches.
Ravid plans to acquire 30% of Carrefour Israel's operator, Global Retail, during its IPO.
The merger requires approval from the Israel Competition Authority due to market concentration.
Carrefour brand would be eliminated in Israel, with its stores becoming Victory branches.
The Competition Authority may impose conditions, including selling some branches, or reject the plan.

Editorial illustration generated by baba News, not a photograph of the event.

Eyal Ravid, the controlling owner of the Victory supermarket chain, is seeking to acquire a 30% stake in Global Retail, the operator of Carrefour in Israel, as part of an upcoming stock exchange listing. This move is intended to pave the way for a full merger of the two chains, creating a single entity with approximately 210 branches.

If approved by the Israel Competition Authority, the merger would see the Carrefour brand cease to operate in Israel, with its branches converted to Victory stores. Victory currently operates 67 branches, and the combined entity would become one of the largest in the Israeli food market, surpassing current leaders like Shufersal in terms of potential scale.

The plan involves Victory first acquiring a controlling stake in Global Retail, potentially through discussions with institutional investors. Subsequently, Victory intends to merge with Carrefour, a move that would significantly expand its footprint. The proposal has been submitted to the Competition Authority for review.

Given the already concentrated nature of Israel's food market, the Competition Authority is expected to scrutinize the merger closely. Potential outcomes include approval with significant conditions, such as requiring Victory to sell 10-16 branches in areas where both chains currently operate, or outright rejection. The authority is examining competitive impacts both nationally and locally, considering factors like branch proximity and target demographics.

The process is in its early stages, and the Competition Authority has begun requesting information about the chains. The timeline for a decision is uncertain, with complex merger reviews typically taking months, potentially clashing with Carrefour's planned IPO in the coming weeks.

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