French entertainment and electricals retailer Fnac has approached the board of electricals specialist Darty about acquiring its rival.
Fnac believes the acquisition of Darty would be a “compelling strategic and financial opportunity” for both businesses because it would create a “leader in the French electronics, editorial and home appliances retail market”.
The potential acquisition would be an all-share acquisition of 100% of Darty’s issued share capital and would entitle each Darty shareholder to one Fnac share for every 39 Fnac shares held.
The deal would value each Darty share at £10.11 and the existing issued share capital of Darty at £533m.
Fnac said the deal would create “broader international exposure” with a presence spanning seven countries with combined sales of over €7bn (£5.2bn).
It would also create an enlarged product offering and a “complementary and efficient store network” and an “enhanced multichannel offering through two complementary websites”.