Sonae SGPS, the Portuguese retailer owner of the Continente brand, is in negotiations with the Abraaj Group to acquire Egyptian supermarket chain Spinneys.
Sonae is hoping to acquire all of Spinney’s store network in Egypt, reportedly 13 outlets in Egypt, the majority of which are hypermarkets.
Sonae will partner with a local retail operator, whose name has not yet been disclosed. If confirmed, the acquisition would come at a time of sustained and paced expansion by Spinney’s. The retailer increased its network by 50% in less than a year. The last new branch was launched in the city of Minya in February.
Sonae’s interest in Spinneys follows the retailer’s refocusing of its African operations. In 2015, Sonae abandoned the Angolan market, where it was launching its supermarket brand Continente in a joint venture with Isabel dos Santos, who went on to launch hypermarket Candando. Last year, Sonae entered the Mozambican retail market following the acquisition of supermarket chain Extra.
Apart from Egypt, Spinneys operates across several countries in the Middle East, namely Qatar, the UAE, Jordan and Oman. Recent reports have suggested that Spinneys is also looking to sell its store network in Lebanon and is in negotiations with Majid Al Futtaim, Carrefour’s retail partner in the region, including in Egypt. These reports, however, have been denied by both parts.