Portuguese conglomerate Sonae has announced that its retail unit Sonae MC has entered into a partnership with Satya Capital, an investment firm focused on the African market.
As a result of the partnership, two food retail stores were acquired in Mozambique for a total investment of $6 million, with ownership divided between Sonae MC and Satya Capital with a 30/70 ratio respectively.
The two supermarkets, branded under the Extra banner and located in the capital Maputo, were purchased from local company Africom Delta Corporation (ADC). Extra has around two dozen stores in Mozambique, targeting lower income consumers.
Extra was previously owned by Pick n Pay, a South African retailer, who struggled to turn a profit with the chain before selling it to ADC in 2013.
The Sonae group has been present in Mozambique since 2014 with its MO fashion store and Zippy store selling children’s clothing. The local food retail market is dominated by Shoprite, Spar and Extra.