Carrefour sells stake in logistics property group to Argan

FILE PHOTO: A Carrefour logo is seen on a Carrefour Hypermarket store in Toulouse, France, March 20, 2019. REUTERS/Regis Duvignau/File Photo

PARIS (Reuters) - French supermarket group Carrefour CARR.PA said on Wednesday it had agreed to sell its stake in Cargo, a real estate company that owns some of its distribution centers, to property vehicle Argan ARGAN.PA as it plows ahead with planned asset sales.

Cargo’s assets are worth about 900 million euros ($1 billion) in total, and Carrefour, which owns 32% of the firm, said it would receive about 290 million euros from the deal in a mix of cash and Argan shares.

It will hold a 5% stake in Argan after the transaction.

Carrefour - which is in the midst of a five-year restructuring plan to boost group sales and profits as it faces pressure in its home market from rivals like Leclerc as well as Amazon AMZN.O - said this latest disposal was part of its plan to shed 500 million euros in non-strategic property assets by 2022.

Reporting by Sarah White ; Editing by Matthias Blamont