On Monday last week, the French retail giants, Carrefour and Promodès, confirmed a merger which will turn the two groups into the world's second largest multiple with an estimated turnover of DKK 400 billion in 1999. With a turnover of DKK 1,000 billion, America's Wal-Mart chain is number one.
In view of the fact that other multiples have shown interest in merging with Carrefour and Promodès, a rise in share values in the retail sector following the merger indicates that the markets expect that further mergers are in the retail pipeline.
With 9,000 outlets worldwide, the new French group will have 240,000 employees of which 110,000 are in France.
Besides France, Carrefour has activities in Latin America, particularly in Brazil. Promodès has a strong position in southern Europe.