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Argil regroups in three-way deal
Page 19
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• Three major European retailing groups are to co-operate in a trading partnership which will develop new methods and strategies for distribution, transport and warehousing throughout Europe.
The Argyll Group, parent company of Safeway supermarkets, Groupe Casino of France and Koninklijke Ahold of the Netherlands have together formed the European Retail Association (ERA). Formalities, including getting final clearance from shareholders over cross-shareholding arrangements between the companies, are expected to be completed in October.
Argyll's director of corporate development, Peter Howitt, says the ERA's discussions over distribution are currently at "a very, very exploratory stage. At the moment we are trying to understand each other's distribution systems."
As well as supermarket retailing, Casino has interests in fast food outlets, DIY stores and production and Ahold also operates pharmacy and catering businesses.
Other major European grocery chains may collaborate with the ERA. Howitt says this may spill over into distribution agreements.