SHARES in discount supermarket chain Dia climbed 3% on news it is negotiating the purchase of local chain El Arbol.

The acquisition would make it the third-largest grocer in Spain.

The deal is rumoured to be worth around €100 million.

El Arbol is owned by a group of savings banks.

A buyout would enable Dia to raise its sales and market share by around 20%.

It had sales of €7.36 billion in the nine months to September and net debt of €792 million.

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