Spanish supermarket chain Covirán is considering the potential acquisition of some Auchan stores in Portugal as the French retailer is forced to sell off some of its outlets in the country, according to Spanish daily Expansión.
This divestiture is a condition imposed by the Portuguese Competition Authority (Autoridade da Concorrência - AdC) to approve Auchan’s purchase of the Minipreço chain.
Auchan must divest stores in five specific regions where its market dominance, exceeding 40%, would be detrimental to competition. The AdC has identified these regions as Aguiar da Beira, Ansião (Avelar), Castelo Branco, Moimenta da Beira, and Sabugal.
Expansion Plans
These divestments could present opportunities for Covirán to expand its Portuguese operations. The company has previously expressed its ambition to increase its market share in Portugal while maintaining a focus on proximity stores.
At the end of last year, Covirán had 250 stores in Portugal and three distribution platforms in Sintra, Vila do Conde, and Algoz, in the Algarve.
Auchan's purchase of Minipreço, for €155 million, significantly expanded its Portuguese footprint from 100 to 583 stores, including 30 gas stations, four warehouses, and an online platform. To comply, Auchan must find a buyer approved by the AdC within six months, with a possible three-month extension.
This divestiture will position Auchan as the fourth-largest food retailer in Portugal, with a market share of approximately 7%.
Together, the two chains are on par with Intermarché and the Spanish chain Mercadona in terms of sales and are only behind Continente, Pingo Doce, and Lidl.
In June, Covirán reported a 3.2% increase in gross sales, to €1.8 billion, in its 2023 financial year. Out of this total, Covirán's sales in Spain amounted to €1.6 billion, while Portugal generated €217.3 million, it added.
