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Majid Al Futtaim, the Dubai-based Middle East operator of French retail giant Carrefour, has acquired Retail Arabia, the franchise owner of 26 Geant stores across Bahrain, the UAE and Kuwait as well as four Gulfmart supermarkets in the kingdom.
The deal, whose value was not disclosed, has been agreed between Majid Al Futtaim and Retail Arabia’s parent company BMA International, which is also based in Dubai.
In a statement, Majid Al Futtaim, which operates City Centre Bahrain, said it was acquiring the Geant franchise owner Retail Arabia from BMA International.
All of the acquired stores, which include hypermarkets, supermarkets and convenience stores, will be rebranded under Carrefour, thereby increasing the number of Carrefour-operated outlets to 80 stores in the UAE, 11 in Bahrain and eight in Kuwait.
Majid Al Futtaim also said that all Retail Arabia employees will be retained. Alain Bejjani, chief executive of Majid Al Futtaim Holding, said: “This acquisition is a major milestone for Majid Al Futtaim, one which further cements Carrefour’s position as the largest and most successful grocery retailer in the region and beyond.”
He says Carrefour as a brand was already ‘synonymous with quality, affordability, convenience and a diligence to offer exceptional customer experience’.
“By extending its reach, we will deliver these promises to more customers in more locations,” added Mr Bejjani.
The deal covered the stores only and did not include Geant franchising rights. Business news network Bloomberg had reported that Geant, a franchise of French grocery retailer Casino Guichard-Perrachon operated by BMA International Group, hired BNP Paribas to advise on the sale, which could fetch as much as $500 million.
The first Geant Hypermarket in the Middle East was opened in Bahrain in May 2001.
