MADRID, July 2 (Reuters) - The world’s third-largest discount supermarkets group Dia said on Wednesday it would buy Spanish groceries chain El Arbol for a symbolic one euro, and assume the company’s debt worth up to 150.8 million euros ($206 million).
Dia, which reached an agreement to sell its loss-making Dia France to Carrefour last month, said it would grant El Arbol a credit line of 7.5 million euros to allow it to continue in business.
France’s Carrefour previously owned Dia but spun it off in 2011 when the company was listed on the Spanish stock exchange. Dia has done well in its home market but faced tough going in France where discounters compete with cut-price hypermarkets.
El Arbol is Spain’s eighth biggest supermarket chain by surface area, with 455 stores mostly situated in the north and west of the country. Net sales in 2013 were 822 million euros.
Dia will keep the El Arbol brand and will develop the chain’s fresh produce range, it said in a statement.
$1 = 0.7331 Euros Reporting by Sonya Dowsett; Editing by Mark Potter