Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

France shields Carrefour from takeover in food security battle

France shields Carrefour from takeover in food security battle

Economy minister says Paris is ready to use new investment screening powers.
Paris is ready to use its new investment screening powers in the name of food security to make sure that Carrefour will stay French.

With a defiant display of economic patriotism, France's Economy Minister Bruno Le Maire made clear on Friday that the government will stop Canada's Alimentation Couche-Tard from taking over retail giant Carrefour.

"This health crisis has taught us one thing — food security has no price," Le Maire said in a radio interview with the RMC network, making clear that Paris is "not in favor of this deal" and would use its investment screening mechanism to block it, if necessary. "It's a polite, but clear and definitive no."

France extended its anti-takeover powers to new sectors including food retail in 2019. Le Maire said he was ready to use them to block the Canadians.

"We have a tool. It turns out that we have been far-sighted," Le Maire said, while hoping he wouldn't need to activate it.

The global pandemic is giving France and other EU countries an extra argument to oppose foreign takeovers for strategic reasons during a phase in which tougher investment screening has also become a mantra in Brussels.

"We were happy to have our distributors, particularly in March during the first lockdown, playing the game of supply security ... the lesson I draw from all this is that food security is indeed strategic for our country and that you don't give up one of the big French distributors," La Maire explained, adding that Carrefour is the No. 1 private employer in France and accounts for approximately 20 percent of the country's food supply.

France's business community fears that such opposition to the takeover might give a negative and protectionist image of France to the rest of the world, the newspaper Les Echos reported.

A trade union welcomed Le Maire's statement, fearing that the takeover might result in layoffs. But the Canadian buyer is ready to invest approximately €2.9 billion in Carrefour, according to Bloomberg.

France has traditionally been highly protective of its food industry.

The country introduced state control on foreign investment in 2005, also in reaction to rumors that U.S. soft drink giant PepsiCo was interested in taking over French dairy giant Danone. The measure was taken by a center-right government led by Dominique de Villepin, in which Le Maire served as adviser of the then-prime minister and EU Internal Market Commissioner Thierry Breton was economy minister.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
×