Auchan buys Dia group supermarket operation in country for €155M

  • Lusa
  • 3 August 2023

The Dia Group leaves the Portuguese market to focus on its strategy - proximity food distribution - in the markets that are most relevant to its business.

Auchan Portugal has agreed to acquire the entire Dia Group operation in Portugal, buying the 489 Minipreço and Mais Perto shops, in an investment of around 155 million euros, it was announced on Thursday.

In a joint statement from Auchan Retail and Grupo Dia, to which Lusa had access, the companies inform that, with this agreement, the Auchan group reinforces its positioning in the sector and expands the network of shops in the proximity and franchising market.

The Dia Group leaves the Portuguese market to focus on its strategy – proximity food distribution – in the markets that are most relevant to its business, the information adds.

The transaction, which is subject to approval by the Competition Authority, includes three warehouses, as well as the necessary contracts, licences and assets.

The agreement establishes the integration of Minipreço’s 2,650 employees and provides for the reinforcement of Auchan’s position in the proximity format, “thanks to the great reach of the Minipreço insignia throughout the country”, says the note.

Quoted in the statement, the executive director of the entire Dia Group, Martín Tolcachir, said: “As the results show, we are entering a phase of consolidation of growth and our goal is for Dia to focus on countries where it has growth potential”.

To achieve this, he added, “it is necessary to face the current scenario and simplify the scope of the Dia Group”.

Martín Tolcachir also said that the decision to sell the Dia Group’s business in Portugal “was not easy”, but stressed that it was the “right” option to focus the group’s efforts on the markets where it is most relevant and has the capacity to grow with a single brand (Dia).

For the general manager of Auchan Retail Portugal, Pedro Cid, this acquisition represents “a strong bet by Auchan, by adding its experience of more than 50 years of hypermarkets in Portugal to the proximity segment and also to the franchising model, which is one of Minipreço’s strengths”.

“The customer will have a complete and close proposal, in all channels and services, with a varied offer, with a strong focus on fresh products, health, price and all solutions for the daily lives of Portuguese families”, said the manager, emphasising that it is “a winning solution for all parties: companies, teams, partners and customers”.

The Dia Group began its activity in Portugal in 1993 and “gained the trust of Portuguese households thanks to the offer of a wide assortment of products at affordable prices and the promotion of a wide range of Dia branded products that have become an ally of the savings of all families”, highlights the joint statement.

The note also emphasises that Auchan – “a pioneer in Portugal in the hypermarket model” – is “a militant of the Good, Healthy and Local” and “ensures the commitment to continue to contribute to improving the lives of the Portuguese, through the relationship of trust it establishes with its teams, its partners and the community”.