1. Tesco buys Carrefour
With its shares up 30% in 2023, the British supermarket has staged a comeback from the wobbles of the past decade. It has solidified its iron grip on the British grocery market, restored profitability and started paying generous dividends again. With rivals such as Asda and Morrisons owned by private equity firms overloaded with debt, its position is more secure than ever. By contrast, France’s giant Carrefour is far less healthy. Its shares are at only half the level they were ten years ago, and it has already been targeted in a takeover bid. Tesco could turn it around, and together they would create a European powerhouse. The French government probably wouldn’t allow it, but it would be a great deal.
2. M&S buys Boots
It has been clear for years that Walgreens is desperate to offload the pharmacy chain it took final control of in 2014. Boots has weighed its owner down with too much debt, and returns have been dismal. Walgreens has tried to sell the chain, and more recently has been examining a listing in London. But what about selling to M&S instead? The food and grocery chain has been brilliantly turned around under the savvy management of CEO Stuart Machin and even rejoined the FTSE 100. It could give Boots’ stores a new lease of life, and there would be synergies between the two to exploit. A merger of Marks and Boots would create a middle England powerhouse.
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