Shares of casinos experience a boost due to expectations of increased bankroll aid
In a tense financial landscape, two parties are vying to take control of Casino, a struggling French retailer. Among the contenders is Czech billionaire Daniel Kretinsky, who is leading a €1.35 billion investment plan to rescue the company. This proposal is significantly larger than the €900m offer from 3F Holding [1].
Casino's financial situation remains precarious, with the need for substantial cash injections to support its recovery. Despite a €1 billion cash injection, Genelot, a banking analyst, has stated that it may not be sufficient for a sustainable recovery at Casino France [2]. The required investments across Casino's network of hypermarkets and supermarkets, as well as the Monoprix chain, would necessitate a €2.5-3 billion cash injection [7].
Currently, Casino is teetering on the brink of default, with a net debt of €6.4 billion [8]. The company's shares have slumped 69% so far this year, but they have shown a slight improvement today, increasing by over 9% [3].
The French government is closely monitoring the situation, expressing concern about potential job cuts at Casino, which had approximately 50,000 employees in France at the end of last year [5]. This suggests potential pressure on the bidding parties to maintain employment levels.
The deadline for an agreement in principle on Casino's financial restructuring has been set for July 27 [6]. Both parties are expected to try to upgrade their offer on the cash injection front, with Kretinsky's representatives reportedly planning to raise their offer, although no confirmation has been received [10]. Pigasse, a member of the competing consortium, has also stated that their offer would be raised, without providing further details [11].
Casino declined to comment on the matter, and the search results do not provide any recent updates on the ongoing bidding war or restructuring cash injections in 2025 [4]. For the most accurate and up-to-date information, it would be necessary to consult specialized financial news sources or corporate disclosures from Casino Group itself.
The French government has emphasised the importance of both parties strongly reiterating their industrial and jobs commitments to satisfy its concerns [9]. This underscores the critical role that Casino plays in the French economy and the importance of its successful restructuring for both the company and its employees.
[1] The Telegraph [2] Reuters [3] Bloomberg [4] Google Search Results [5] Les Echos [6] Reuters [7] Reuters [8] Bloomberg [9] Les Echos [10] Les Echos [11] Les Echos
- In order to achieve a sustainable recovery at Casino France, the financial situation necessitates a €2.5-3 billion cash injection across its network of hypermarkets and supermarkets, as well as the Monoprix chain.
- Both contenders, Kretinsky and Pigasse, are anticipated to try to upgrade their offer on the cash injection front, with Kretinsky's representatives planning to potentially raise their €1.35 billion investment plan.
