Carrefour Plans £1.7bn Shopping Malls Deal

Carrefour (Paris: FR0000120172 - news) has announced plans to buy 127 shopping centres across Europe in a €2bn (£1.69bn) deal.

France's largest retailer, which already owns nearly 10,000 hypermarkets, supermarkets and convenience shops across the continent, has joined forces with eight investors to buy the centres in France, Spain and Italy.

Many of the Klepierre (Paris: FR0000121964 - news) sites, which are located in France, Spain and Italy and generate an annual rental income of €135m (£114m), are close to its existing stores.

They will sit alongside its existing 45 malls in a new company, 42% of which will be held by Carrefour with the rest held by investors.

Carrefour has been struggling for years, even before the European debt crisis hit its biggest markets.

Georges Plassat took over as chief executive last year, pledging to cut costs and improve the fortunes of the company's 1,300 hypermarkets.

Carrefour's share price climbed more than 1.5% in the hours following the announcement.

The deal, which Carrefour said would make it one of Europe's leading shopping mall companies, is subject to regulatory approval.

The company is expected to close the deal in March or April (Frankfurt: B2B.F - news) next year.

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