Euronext said Casino's exclusion from that index would take place after markets close on Sept. 15, and it would become effective on Sept. 18.

If a company falls out of a key equity index, it can reduce demand for the stock from investment funds that track the index or invest in the index.

Casino's shares have slumped by around 80% since the start of 2023. The stock closed down 1.7% on Thursday, while the stock price of Rallye - the holding company behind Casino - fell 19.9%.

Casino has been hit by fierce competition in the French supermarket sector, and it was forced to restructure after years of debt-fuelled deals started to weigh on its balance sheet.

In July, Casino agreed upon a debt restructuring deal with creditors led by Czech billionaire Daniel Kretinsky.

Nevertheless, last month credit rating agency Standard & Poor's (S&P) cut its rating on Casino to 'D' to denote a likely default, after Casino failed to pay the interest on a bond.

(Reporting by Sudip Kar-Gupta; Editing by Josie Kao)

By Sudip Kar-Gupta