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AUCHAN & MAMMOUTH

LITTLE BIRDS STRATEGY towards MAMMOUTH

KEY FACTS
May 1996 - AUCHAN acquires 10.6% of DOCKS DE FRANCE June 1996 - AUCHAN launches a hostile takeover bid on MAMMOUTH July 1996 - DDF accepts AUCHANs OFFER : Ffr 19 billion

September 1996 - AUCHAN becomes the owner of nearly 99%of the DDF shares
October 1996 - AUCHAN announces that each MAMMOUTH store bigger than 6000 square meters will take the name AUCHAN next April

KEY FACTS
JANUARY 1997 - AUCHAN acquires completely (with permission of the minister of Economy) DDF
April 1997 - 1st banner change from MAMMOUTH to AUCHAN in St-Genis June 1997 - AUCHAN stops the existence of DDF and announces the banner change of all stores smaller than 6000 square meters October 2009 - The last MAMMOUTH store closes in Lacroix Saint-Ouen - Total retail banner disappearance

WHY DOES AUCHAN ACQUIRE MAMMOUTH ?


mid-90s - legislation against new hypermarkets constructions (France and Spain) AUCHAN owned 80 hypermarkets -> 6th largest distribution group Competitors : CASINO, LECLERC, CARREFOUR were very powerful : BIGGER economies of scale NO choice but acquiring a close competitor : DDF with its MAMMOUTH hypermarkets and ATAC supermarkets AUCHAN then Doubled in size -> became one of the Frances top retailers

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