Dia fails to reach agreement over El Árbol acquisition
Spanish discount grocer Dia has revealed that talks regarding the purchase of supermarket chain El Á…Spanish discount grocer Dia has revealed that talks regarding the purchase of supermarket chain El Árbol have ended with no agreement being reached, following reports that discussion of a deal was underway.
In a statement to the National Securities Market Commission, the government agency responsible for the financial regulation of the securities markets in Spain, Dia said, "As part of the ongoing process of analysing growth opportunities, Dia has held preliminary talks regarding their interest in the potential acquisition of Grupo El Árbol.
"Now, these discussions have concluded without any agreement or commitment."
Reportedly, the deal would have been worth around €100 million, excluding debt, and would have made Dia the third largest grocer in Spain, after Mercadona and Carrefour.
According to Espirito Santo Research, such a deal would have enabled Dia to raise its domestic sales and market share by 20%.
At the moment, Dia has over 7000 stores internationally, while Grupo El Árbol has over 400 supermarkets and 31 cash and carry stores.