There Paris stock exchange responds badly to rumors about Carrefour, with the retail giant risking one very high fine by the French government. The Transalpine Ministry of Economy, in fact, would have put the company under the magnifying glass for possible abusive practices with affiliates, effectively causing an imbalance in contractual relationships with franchised stores. And at the news of the possible fine of over 200 million, the stock collapsed, with a decline of 9% which brought the price to a three-year low. Not good news for Carrefour, which however is ready to lodge an appeal if the indiscretion launched is confirmed.
Carrefour risks a hefty fine
The rumors about the possible million-dollar fine against Carrefour were launched by the newspaper The Letterwho came into possession of a document in which the French Ministry of Economy allegedly made the request for sanction to the group. A fine of 200 million for “abusive practices committed by the latter to the detriment of its affiliates and tenants”, an accusation that would put the company in check.
In the document of over 160 pages presented, in fact, by rue de Bercy they are certain of incorrect practices of the retail distribution giant, with Carrefour affiliates, therefore, who would always have been put at a disadvantage compared to the company.
One aspect, the Parisian ministry says, is not of little importance and which could be “solved” with a sanction against the company which operates globally with a successful supermarket network.
The stock collapses on the stock market
Winning all over the world, with excellent results in the countries in which it operates. But with an indiscretion about an incoming fine which has effectively sunk the title. The Paris Stock Exchange, in fact, did not take the news of the possible fine well at all, causing Carrefour’s prices to collapse.
After the rumors that arrived on Monday, in fact, the title of the big French large-scale retail trade accuses one 9% decline at 13.22 euros, at the lowest since 2020 and is the bottom of both the Cac 40 index (+0.16%) and the Stoxx Europe 600.
A situation that leaves doubtful investors who are still trying to better analyze the scenarios and possible repercussions of the next legislative elections in France.
Carrefour ready to appeal
But in the meantime the group does not sit idly by and observes what is happening, rather it is ready to take action. If a single indiscretion was capable of knocking out the title, with serious economic repercussions in the present and near future, the possible fine could do even worse.
Which is why the possible appeal to the fine that will be imposed by the French Ministry of Economy, with the decision of rue de Bercy which will be contested. As announced to AFP, in fact, the company is certain that it has operated in the right way and that the accusations made by the ministry are not only false, but also cause damage to its image which could have consequences for the economy and business of the group .
A situation that certainly will not stop at the indiscretions of The Letterwith both story bells trying to assert their position and truth over the other.
