The Teract group, owned by the agricultural cooperative InVivo, and Casino announced on Thursday that they had decided to abandon their plan to merge their distribution activities in France.

Casino and Teract had been in exclusive talks since March, and the exclusivity period expired on Thursday.

"Teract and the Casino group have decided, by mutual agreement, not to pursue these discussions," explained Casino in a press release.

"The Casino group and Teract nevertheless remain open to discussions on a potential operational partnership, which could cover bakery, viennoiserie & patisserie products and would also include the conclusion of a contract to develop fruit and vegetable channels with Teract," Casino added.

At the end of April, the group received a competing offer from Czech businessman Daniel Kretínský. The latter offered to take control of Casino via a €1.1 billion capital increase.

Heavily in debt, and under pressure from rating agencies, Casino began formal negotiations with its creditors at the end of May. (Written by Blandine Hénault, edited by Tangi Salaün)