BEAUTY AND PERFUME stores Druni and Arenal have announced an €870 million merger with both brands retained and no job losses expected.

Druni is based in the Valencian Community and was set up by the Casp family in 1987.

It has 400 stores in Spain and recorded a turnover of €575 million last year.

The headquarters of the new combined group will remain in Carlet with Bernardo Casp serving as CEO with a 50-50 stake between both parties in a holding company.

The 60% majority shareholder in Arenal is MC Sonae which owns supermarket and pharmacy chains in Portugal, with Arenal’s turnover reaching €192 million in the last financial year with the company operating 70 shops in Spain.

The remaining 40% of Arenal shares are owned by the Vazaquez family who founded the retailer in 1975, before MC Sonae took a majority stake four years ago.

The Arenal and Druni brands will remain with the aim of accelerating online and offline growth

Both chains in Spain have been complimentary to each other with Arenal shops in the northern part of the country, while Druni’s market has been mainly on the Mediterranean coast and in Madrid.

Subject to regulatory approval, the deal is expected to be formally closed before the end of the year.

In a joint statement, the companies said: “This merger will create a major new operator in the Iberian Peninsula with high growth potential.”

“By joining forces, new opportunities will open to ensure an even brighter future for both companies,” it added.

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