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120 2014 Registration Document
Comments on 2014 fiscal year
4
Other information
Initial funding consists of €1.8 billion in equity, contributed by the co-
investors for €1.0 billion and by Carrefour for €0.8 billion (of which
€0.7 billion through the transfer of assets at market value and €0.1 million
in cash), and €0.9 billion in bank credit lines obtained by Carmila.
In the 2014 Consolidated Financial Statements, in application of the
consolidation standards applicable as from 2014 (IFRS 10, IFRS 11
and IAS 28R), the new company has been accounted for by the equity
method as it is jointly controlled by Carrefour and its co-investors, which
own 42% and 58% of the capital respectively. The carrying amount on
recognition was €784 million. The transaction led to the recognition
in non-recurring income of a €333 million capital gain, in line with the
accounting treatment specified in IFRS 10 in the case of a loss of control
as defined in IFRS 3.
Acquisition of Dia’s operations in France
On June 20, 2014, the Carrefour group announced that, following
exclusive negotiations with Dia, it had agreed to acquire Dia France
based on an enterprise value of €600 million.
On November 21, 2014, Carrefour announced that the proposed deal had
been authorized by France’s anti-trust authorities, allowing the Group to
pursue its multi-format expansion in its domestic market. The authorization
covered the acquisition of over 800 points of sale, in exchange for an
undertaking by Carrefour to sell around fifty others. Those sites were
reclassified as held for sale as at December 31, 2014.
The transaction was completed on December 1, 2014.
In accordance with IFRS 3 - Business Combinations, provisional allocation
of the purchase price led to the recognition of goodwill of €189 million.
(in € millions)
Accounting value
Temporary fair value
Intangible assets
206
121
Tangible assets
445
454
Financial assets
12
23
Fixed assets
664
598
Net debt
(16)
(34)
Other net assets and liabilities
(87)
(127)
TOTAL NET ASSET
560
437
Consideration transferred
626
Goodwill
189
The effect of the acquisition on 2014 consolidated operating income and net income is not material.
Sale of an interest in the Brazilian subsidiary to an outside investor
On December 18, 2014, the Carrefour group announced that Peninsula,
a Brazilian investment firm, had acquired a 10% interest in Carrefour’s
local subsidiary for BRL 1.8 billion (€525 million).
Peninsula also has call options allowing it to increase its interest to up
to 16% over the next five years.
In accordance with IFRS 10 – Consolidated Financial Statements, the
transaction led to the recognition in consolidated equity of a net capital
gain of €285 million and of non-controlling interests of €174 million.
This transaction is a significant first stage in a project to open up the
Brazilian subsidiary’s capital in order to strengthen its local roots and
support its development. It will enable Carrefour to benefit from its new
partner’s recognized experience in the local retail market as it continues
to develop the multi-format model.