LISBON (Thomson Financial) - Sonae SGPS said its Sonae Distribuicao unit's acquisition of Carrefour Portugal's 12 hypermarkets and 13 other projects already licensed has received preliminary approval with conditions from domestic competition authority AdC.

In a statement, Sonae said the conditions include reducing its food sales area in existing or projected stores in the Porto metropolitan area by 10,600 square metres, noting that some of this space is allowed to be converted into non-food sales area.

Sonae added that the AdC has also obliged it to divest supermarkets and hypermarkets elsewhere in Portugal covering a total retail area of up to 14,000 square meters.

The company also said it has been obliged to limit its growth in stores which sell food on the South bank of the Tagus river, opposite Lisbon, to 14,000 square metres over the next three years.

Sonae said it has also undertaken not to lodge any new requests for licences for food-based stores on the South bank of the Tagus river, in Viana do Castelo, Coimbra, Portimao, and Pacos de Ferreira for one year after the definitive decision of the AdC is announced.

If the company has not succeeded in executing the reduction of sales space and divestments within the deadline set by the AdC, the competition authority and Sonae will have to appoint a third party who will implement the divestments itself, under the auspices of the AdC.
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