Europe roundup: M&A, growth and regulation

In this instalment, our analysts for Europe offer their take on some of the region’s latest developments and initiatives. Here’s what you need to know about:  

• Carrefour's exit from Romania 

• Major French retail partnership 

• Strong results from Italian market leader Selex 

• Proposed German sugar tax faces opposition 

Pavăl Holding completes €823m Carrefour Romania deal 

Romanian family-owned Pavăl Holding has completed its acquisition of Carrefour Romania, finalising a deal first announced in February 2026. The transaction includes 55 hypermarkets, 191 supermarkets, 202 convenience stores and 30 Supeco discount outlets. The acquired business generated €3.2 billion in gross sales (including VAT) across 2024 and 2025, equivalent to around 3.5% of Carrefour Group’s total sales. In addition to Carrefour’s retail operations, the deal also covers its commercial activities and real estate assets in Romania. This divestment comes on the back of its exit from Italy and rumoured discussions for its Polish and Argentine interests. The completion of the sale marks another step in Carrefour’s strategy to focus on its core markets of France, Spain and Brazil.  

Insight Analyst, Linda Haden’s view: the sale is significant not only because it ranks among the largest M&A transactions in Romanian history, but also because it signals a notable shift in the country's retail landscape. With Romania's competition authority concluding that the transaction raises no competition concerns, attention is now turning to Pavăl Holding's ambitions for the business. The key question is whether Pavăl will treat Carrefour Romania as an investment vehicle or leverage its financial resources, entrepreneurial track record and knowledge of the local market to drive growth through sharper pricing, stronger local sourcing and targeted expansion. If the group pursues an aggressive growth strategy, Lidl, Arnold Delhaize, REWE and Kaufland could find themselves facing a far more formidable competitor than they did under Carrefour's previous ownership. 

The French competition authority approves the Auchan and Intermarché agreement   

On 6^th July, the French competition authority approved the conversion of 165 Auchan supermarkets to the Intermarché banner under a franchise agreement. The rebranding from Auchan to Intermarché or Netto will commence from October 2026. The partnership will mean the stores will be managed by Auchan but commercially operated by Intermarché. Guillaume Darrasse, CEO of Auchan explained to LSA, a French publication, ‘this deal is the best way to empower our supermarket teams to perform with a concept better suited to our needs than our own. We will renovate all the stores within three years. It's also a managerial boost and a way for store managers to have adapted logistics and a modernized workspace’. 

Senior Insight Analyst, Lucy Beaumont’s view: the partnership is an exciting move in French retailing, the new model should enable Auchan to unlock growth from its supermarkets, which historically has been a challenge for the retailer. With Auchan and Intermarché aiming to rebrand and renovate the stores, some of which are former Casino supermarkets. Investment into the stores will be vital to increase the stores profitability and increase performance in the channel. Take a look at our latest global supermarket and hypermarket trends 2026. 

Selex tops €22bn sales as retail media expands 

The Italian market leader reached sales of over €22b, up 5.9% from 2024. Private label contributed strongly to growth, with sales reaching €2.3bn (+7.5%). Online also saw positive growth, up 6% YoY, with home delivery driving the uptick. However, the big change in 2025 was the launch of Selex’s retail media branch, Selex Media, which offers suppliers the opportunity to engage with shoppers across over 5,000 screens in 375 stores. 

Senior Insight Analyst, Michela Pearson’s view: Selex continues to lead the Italian market with above average growth, thanks to its investment in stores, technology and innovation.  The plan for 2026 includes an investment of 690m, with circa 60 new store openings and almost 100 store upgrades. A target of €23.3bn sales is set for this year, building on the strong success Selex’s banners continue to see around the country. 

German beverage industry pushes back against proposed 2027 sugar tax 

The German government is planning to introduce a sugar tax on beverages from January 2027, with revenues expected to support the healthcare system and raise an estimated €650 million in its first year. Major beverage industry associations, including soft drinks, mineral water, juice and brewing groups, have strongly opposed the proposal, arguing that the implementation timeline is too short for recipe reformulation, pricing negotiations and operational adjustments. The industry also criticises the lack of clarity over which products will be taxed, the additional bureaucracy involved, and what it sees as a policy reversal that prioritises fiscal revenue over health objectives. 

Insight Partner, Dan Butler’s view: if implemented, the tax is likely to increase costs across the beverage value chain, creating pricing challenges for both manufacturers and retailers. The proposal may accelerate reformulation efforts and boost demand for lower-sugar products, while increasing pressure on smaller suppliers that have less capacity to absorb compliance and operating costs. 

What to read next: REWE s 2025 results: a snapshot of European retail 

 

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