PARIS (Reuters) - French electronics retailer Fnac Darty (FNAC.PA) and Germany’s MediaMarktSaturn (CECG.DE) said on Tuesday they had signed a memorandum of understanding to create a European retail alliance on purchasing, in a bid to boost their efficiency.
This is the latest alliance within the European retail industry, which has seen U.S. internet giant Amazon (AMZN.O) make inroads over the last year.
The deal will initially cover four areas: strategic partnership agreements with key suppliers, private label sourcing and licensing as well as innovation and data collaboration, the statement said.
The alliance will be open to other parties and its financial impact should start progressively from 2019, with a full effect targeted for 2020, the companies said, without giving further details.
Consumer electronics group MediaMarktSaturn is majority-owned by Germany’s Ceconomy, which is also the largest shareholder of Fnac Darty with a 24 percent stake.
MediaMarktSaturn had annual sales of 22 billion euros and Fnac Darty of 7.4 billion euros.
Reporting by Dominique Vidalon, Editing by Sarah White