India’s Bharti Enterprises has confirmed it is in final talks with French retailer Carrefour for a retail joint venture.
Bharti, which ended its six-year partnership with American retailer Walmart, is likely to own a majority stake in the joint venture that will run wholesale stores.
Carrefour pursued the talks after the Bharatiya Janata Party opposed FDI in multi-brand retail.
The French retailer currently runs five wholesale stores across India, which are likely to be absorbed by the JV.
Bharti and Japanese retailer Aeon are also reportedly in discussions to form a JV that will see Aeon take a minority stake in Bharti’s Easy Day supermarkets.
A senior consultant from a global advisory company, who declined to be named, said the proposed alliance is beneficial for both Bharti and Carrefour.
“The large presence of Bharti’s Easy Day outlets will give stability to the cash and carry business while making the domestic player more price-competitive and strengthening its back-end support, which is the key to succeeding in the retail business.”
