Creating Shareholder Value. The Case Carrefour Group

Royal Ahold is entered on polish market from the 1995 and employed about 10.000 people. In all the Poland Ahold had 179 supermarkets that trade under the Albert banner, 15 compact hypermarkets trading under the Hypernova banner and four gas stations 69.
However, on 4 December 2006, Ahold and Carrefour has arrived at an agreement in which Ahold sold all of its polish retail operation to Carrefour selling the shares of Ahold Polska Sp. z.o.o.
Carrefour takes the effective control of Ahold Polska only on the 2 July 2007 because of the fulfillment of certain conditions, including anti-trust approval, to which this type of transaction is subject. It must be said that the competition authorities announced its approval only on the condition that Carrefour transfer 9 stores. Carrefour Group accepted this condition acquiring all the Ahold Polska.
With the acquisition Ahold Polska becomes Carrefour Polska. This transaction is been evaluate for € 375 70 million and it is consist of a cash consideration and assumed debt. The price of the operation is not € 375 million since is subject to customary price adjustments.
This acquisition is very important for Carrefour because with this deal it is in second position in the Polish retail market. Now Carrefour is present in numerous regions of Poland.
It was calculated that the net sales generated between the acquisition date and year end was € 241 million. At the acquisition date, fixed assets amounted to € 214 million. With the acquisition the people employed become about 26.000 (including those that already worked in Ahold stores). Only in June 2007 are been employed over 9.000 new employees.

Given the numbers above it is clear that this acquisition had generated significant investment in the Polish economy.
It is well say that Carrefour Group doesn’t enter in the Poland market on 2007 but it was already there from the 1997 72. The first Carrefour hypermarket in Poland opened in Lodz. Before the entry of Carrefour Group the trade name of supermarkets was Champion and Globi. With the agreement of acquisition on 2006 Carrefour Group introduced new formats (mini-hypermarkets and Carrefour Express supermarkets with sales area of 800 to 2000 square meters) replacing Champion and Globi.