Agglomerate, or die

Article Abstract:

The planned merger between ASDA and Kingfisher could herald the beginning of a pan-European consolidation in the retail industry. Stock prices for ASDA and the other major three United Kingdom food retailers have risen. A non-food retailer also has to be involved in a merger likely to bring benefits of economies of scale and global buying power. Boots is one company that could complement a supermarket. Meanwhile, Storehouse is an attractive investment proposition among retailers.

Supermarket Chains, United Kingdom, ASDA, Kingfisher PLC

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Basket of complaints

Article Abstract:

Kaufhof plans a merger with Metro Handels and the new company would be the biggest retailer in Europe. The merger has been approved by 99.7% of shareholders, but there may be a legal case on the terms of the merger. Kaufhof's chief executive has warned that the merger could be paralysed by a legal case and the threat of action means that a firm schedule cannot be set out for the merger. Kaufhof has performed well in terms of its share price in 1996, despite these problems.

Kaufhof AG

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A buyer's market

Article Abstract:

Promodes has made a bid for Casino which has been rejected by the company's board as not high enough. The bid is not likely to be successful unless Promodes increases its offer, and a rise of between 15% and 20% may be needed for the bid to succeed. Casino has seen a rise in its stock price due to a belief that an acquisition was likely. Organic expansion is not easy for retailers in France, and this has pushed up the price of existing retailers.

Supermarkets, Promodes S.A., Ets Economiques du Casino Guichard Perrachon et Cie.

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