French hypermarket chain Carrefour announced Friday its intent to enter a preliminary agreement to acquire DIA France, the French unit of Spanish supermarket chain Distribuidor Internacional de Alimentacion SA, for 600 million euros ($816 million).
DIA, which was spun off from Carrefour three years ago, announced in March that it would explore new alternatives for its French business, which had struggled to grow in the market. DIA France currently operates 800 stores and reported sales of 2.3 billion euros ($3.1 billion) in 2013. The supermarket chain is focused on expanding in markets like Iberia, Argentina and Brazil, and is closing stores in China.
Carrefour, Europe’s largest retailer, said the transaction would contribute to the growth of its multi-format store network in its domestic market and would allow it to offer consumers services tailored to their modern consumption habits.
Completion of the transaction is subject to signing final agreements after consultations with DIA France’s employee representative bodies and relevant antitrust authorities.