Reports in the German trade press suggest the parent of Lidl and Kaufland is seeking to bankroll a EUR9 billion funding in its current financial year, which would be a record after the EUR7 billion investment last year. The company is said to have approached Bayern LB and Société Générale to find lenders for the project.
While some of the capital would support ongoing US expansion, remodelling its European estate is a main focus as Schwarz targets EUR100 billion in sales. While this is expected to increase the debt burden which reportedly rose by EUR3 billion to EUR17.3 billion last year, CEO Klaus Gehrig sees the capitalisation as an “investment in the future”.
Source: Business Insider Germany