For big manufacturers such as Toyota, IBM, Heineken and Peugeot, CFAO provides access to markets which are too small or risky to justify a local operation.

ECONOMIST: PPR spins off CFAO

Eventually CFAO may be disintermediated as markets develop and big firms begin selling directly, but that will probably take generations, says a banker involved in the listing.

ECONOMIST: PPR spins off CFAO

CFAO's recent return on assets, of over 20% a year, he points out, far exceeds that of the Gucci Group, at around 7%, mainly because PPR paid so much for the latter.

ECONOMIST: PPR spins off CFAO

Being inside PPR has certainly benefited CFAO.

ECONOMIST: PPR spins off CFAO

But CFAO is another story.

ECONOMIST: PPR spins off CFAO