Carrefour’s strong market performance: Canadian Couche-Tard interested in a merger

January 13, 2021 16:00

Carrefour shares soared more than 14% mid-trading day on the Paris Stock Exchange to 17.60 euros per share, after it was announced that the Canadian supermarket giant Couche-Tard has contacted the French company to initiate "friendly talks" about a merger. The talks are very preliminary, according to Carrefour, but they have been very well received by the market.

Couche-Tard has more than 14,000 stores around the world, with a primary presence in North America, although it is also found in Europe, notably Poland, Scandinavia, and the Baltic countries, and operates in some countries under the Circle K brand. It has a market capitalization of 30 billion euros. Carrefour has more than 12,000 stores in some thirty countries, and its market capitalization is 14 billion euros.

Source: Admiral Markets MetaTrader 5 Supreme Edition. Carrefour daily chart. Data range: from September 23, 2019 to January 13, 2021. Prepared on January 13, 2021 at 12:30 CET. Keep in mind that past returns do not guarantee future returns. 

 

On the chart, the Stochastic indicator shows that the stock is overbought while the MACD indicates strength. Moving averages are bullish. In recent months, it has moved in a strong lateral channel that has managed to break in the high zone and that ends with a bullish opening gap, breaking resistance.

Carrefour has not done well on the stock market in recent years. These are the quotes with which it has ended the last five years: 2020, -6.15%; 2019, 0.27%; 2018, -17.35%; 2017, -21.19%; 2016, -14.11%. So far this month, however, it has risen more than 25%.

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