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Carrefour confirms sale of its Taiwan business

(Source: Reuters )

French retailer Carrefour will sell its 60 per cent share of its Taiwan joint venture to its partner Uni-President in a deal that values the business at about US$2 billion. 

Investors responded with enthusiasm to the news, with Carrefour’s share price gaining 3 per cent on the Paris stock exchange on Wednesday. Reuters said the move sparked hopes the retailer might use the cash to buy back shares. 

Last August analysts revealed Carrefour was about to commence a sale process for the Taiwan business unit, hiring Morgan Stanley to oversee the process. 

The transaction is expected to be settled by mid-next year.

Brokerage Jefferies told Reuters the price Uni-President will pay is “better than originally speculated”.

“A mid-2023 completion should provide the firepower for another, sizeable share buyback,” the brokerage added. “We estimate an earnings accretion in the mid-single digit region.”

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