Concentration between retail chains Ahold and Spar approved, subject to conditions
Conditions include commitments to sale several stores in four regions. By the mentioned transaction retail chains ALBERT and INTERSPAR/SPAR will merge in the Czech Republic. The decision has not come into force yet.
The undertaking SPAR conducts its business activities solely in the Czech Republic and also in the retail sector of goods of daily consumption. Within the Czech territory it operates 50 stores, from which 14 SPAR supermarkets and 36 INTERSPAR hypermarkets. The undertaking Imobilia is active in the area of property rental and provision of commercial services provided almost solely to undertaking SPAR.
Within the first phase of the administrative proceedings the Office concluded that the investigated merger raises substantial competition concerns and may distort competition in the territory of four cities where the activity of merging parties overlaps and their combined market share significantly exceeds the 40 %. In such areas merging undertakings are subjects to low competition pressure from competitors holding significantly lower market shares or number of stores.
At the same time the Office assessed possible impacts of notified concentration between undertakings in individual markets of goods offered, among others, also in hypermarkets, supermarkets or retail stores where merging parties are active on the demand side of the markets. However, within these markets merging parties hold relatively low market share and are subject to competition pressure from other retail chains and, among others, so called cash&carry stores or other wholesalers. Therefore the Office concluded that the concentration does not raise any competition concerns in such markets.
According to the Office if submitted commitments are fulfilled the concentration will not lead to substantial lessening of competition, neither as a result of unilateral conduct nor coordinated effects. Merged undertaking will be subject to competition pressure from financially and economically significant competitors.
International and External Relations
14/056/HS023 – S405/2014
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