Spanish retail group Dia has it agreed to sell its business in Brazil for a 'symbolic price' of €100, and exit the country to focus on more profitable markets such as Spain and Argentina.
Brazilian asset manager MAM, which belongs to Banco Master, will buy the supermarket chain in Brazil, Dia said in a filing to the Spanish stock market regulator.
The Spanish company committed to transfer €39 million to its Brazilian unit before the sale.
The sale will prompt Dia to book a €101 million impairment, it said in the filing.
Dia had said in March it would close more than 300 stores and three warehouses in Brazil following negative results last year.
'Not Obtained The Expected Return'
'Since its arrival in Brazil in 2001, Grupo Dia has made a strong investment and effort in the country that has not obtained the expected return, a situation that has finally led to the decision to focus on Spain and Argentina, where Grupo Dia has currently achieved a relevant position with a strategy focused on local food distribution,' the retailer said in a statement.
The completion of the deal is subject to Dia receiving authorisation from the relevant financial entities for the syndicated financing.
The company is selling assets to reduce its net financial debt. It said last year it would leave Portugal, where it had around 500 supermarkets.
Auchan Deal
Auchan recently finalised its acquisition of Dia's Portuguese operations. This announcement follows the approval from Portugal’s Competition Authority (Autoridade da Concorrência - AdC).
The deal, originally announced in August 2023 and valued at €155 million, transfers ownership of 483 Minipreço stores to Auchan, adding to its existing 100 outlets.
Additional reporting by ESM
