Casino Is Studying Strategic Options for Combination of Latin America Assets

   By Anthony Shevlin 
 

Casino Guichard-Perrachon SA (CO.FR) said Thursday that it is studying various strategic options for a combination of its Latin American assets, but that it doesn't justify a market disclosure.

The French retailer said that it "studies its various strategic options in this region in the context of the permanent review of its investments. These thoughts haven't led to any material element that would justify a disclosure to the market."

The statement follows press articles mentioning an upcoming announcement of a combination of its assets in the region, Casino said.

Casino posted first-quarter sales in April of 8.85 billion euros ($9.91 billion), up 4.3% on an organic basis. In Latin America, Casino noted strong growth especially in Brazil, where sales rose 14% on an organic basis.

The company has been hit by a string of downgrades recently but says it remains focused on its strategic and financial objectives.

Casino is currently undertaking an asset-disposal plan.

The shrinking of Casino's business and the company's margin-maximization strategy could undermine its long-term strategic position, HSBC analysts say.

Write to Anthony Shevlin at [e-mail]

(END) Dow Jones Newswires

May 09, 2019 01:32 ET (05:32 GMT)

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