Carrefour (CA.FR) stock plunged more than 6.0% after the Canadian company Couche-Tard abandoned its attempted takeover of the retail giant after the French government said it would veto the deal due to the food security concerns. French politicians did not change their minds, even despite the assurances of the founder of Couche-Tard Alain Bouchard, which promised to spend billions in the development of the company, keep employment unchanged for the next two years and that the group would be listed on the Paris Stock Exchange in parallel with Canada, Bloomberg reported. "Food security is a strategic consideration for our country and one does not just hand over one of the large French distributors like that," France's Economy Minister Bruno Le Maire said.
Carrefour's (CA.FR) shares erased nearly all gains since the deal was announced last week. Stock found some support at the upward trendline and is currently testing major resistance at € 15.70. If buyers will manage to break above it, then the upward move towards recent high at € 18.04 may be resumed. On the other hand, should a break below the trendline occur, support at € 15.05 may be at risk. Source: xStation5
