The supermarket chain DIA is going through a financial crisis that may end up making its brand disappear. After a historical collapse of the action, which has come to take the company out of the Ibex 35, DIA is in the eye of the hurricane of most analysts.
JP Morgan was the last to draw up a report in which he refers to the chain. For the American investment bank, Mercadona is the ideal company that could save the future of DIA if it were to acquire it. “The fate of DIA could be in the hands of Mercadona,” they say. The experts justify their argument because Juan Roig’s company is three times bigger than DIA, has a net box of 2,600 million euros and a very aggressive pricing and investment policy. “
JP Morgan experts believe that DIA is currently having a “wrong strategy and bad execution”. They add that “both the margins in Iberia and the low level of investment in prices are unsustainable”, which distances it from competitors such as Mercadona or Lidl, and to which we must add “the loss of support from its suppliers” that it has suffered. “We see unlikely to increase revenue or gross sales at a time when suppliers have stopped supporting the supermarket chain and the brand has been damaged,” they say.
While in the investment bank they point to the Valencian company as the best alternative for DIA, other investors such as Luis Amaral and the Bountoux Halley family, heirs of Carrefour, would be studying their possible acquisition. According to El Confidencial, these investors would have already contacted the company to attend the capital increase prepared for 600 million euros