Spain's Distribuidora Internacional de Alimentacion SA (DIA) on Monday said that it has held initial talks over the possible purchase of supermarket chain El Arbol. DIA is a multinational discount grocer with 7,000 stores worldwide, its website said.

Reuters, citing a report by Spanish news daily Diario Expansion, said DIA offered €100 million ($137 million) to acquire El Arbol. The two companies, however, have not yet reached an agreement. 

The purchase of El Arbol would make DIA the third-largest grocer in Spain behind Mercadona and Carrefour. El Arbol is owned by a group of Spanish savings banks, the report said.

Based on its 2012 annual report, DIA has a total of €3.4 billion assets under management. It generated a net profit of €146 million and a revenue of €9.7 billion for the year ended December 31, 2012. Aside from Spain, DIA also has a total of 2,400 stores located in Portugal and France as well as in emerging markets such as Argentina, Brazil, Turkey and China. This makes it the third-largest franchise player in the European food sector, its website said.