Spanish retailer Dia Group has announced it has reached agreement with Auchan Retail over the sale of its business in Portugal, for €155 million.
In a statement, Dia said that its departure from Portugal, where it operates the Minipreço and MaisPerto chains, will enable it to 'concentrate on its strategic focus' in markets where it has a stronger position.
In Portugal, Dia's portfolio includes 489 stores, three logistics platforms, and a variety of contracts, licences, rights and concessions necessary for operating in the country.
'Growth Consolidation Phase'
“We have entered a growth consolidation phase and our goal is for Dia to focus on countries where it has growth potential," commented Martín Tolcachir, global CEO of Grupo Dia.
"For this, it is necessary to face the current scenario and simplify the portfolio of Grupo Dia”.
Tolcachir added that the decision "has not been easy", but he feels that this is the correct move to make, in order for the group to focus on markets where it has "the capacity to grow with a single banner, Dia."
Minipreço, which Dia described as a 'solid business' that has 'performed well in a complex environment', will be integrated into the Auchan Retail store network in Portugal, boosting the latter's presence in the proximity channel.
Dia said that it was hopeful that the transaction will be completed between the end of 2023 and the start of 2024, subject to customary closing conditions.
In the first half of its financial year, Dia reported losses of €67 million, while net sales rose 4% to €3.6 billion.
30 Year Presence
Dia commenced operations in Portugal 30 years ago, in 1993.
“I want to thank the entire Dia team in Portugal for the effort and commitment with which they have promoted the business in these 30 years," Tolcachir added. "From each store, warehouse and office, their contribution has been essential to make Dia the neighbourhood store loved by communities that it is today.
"We trust that this decision opens a new stage for the business in Portugal, hand in hand with Auchan."
