The Office of Competition and Consumer Protection issued objections to a concentration consisting in takeover of Eko Holding by Eurocash. The transaction may substantially limit the competition on three local markets.

Eurocash is involved in wholesale and retail sale of fast moving consumer goods (FMCG), tobacco and press products, as well as in organisation of franchise and partner networks: ABC Sklepy po sąsiedzku, Delikatesy Centrum, Groszek, Euro Sklep, Gama, Lewiatan and Drogerie Koliber, which associate entrepreneurs conducting retail sale of fast moving consumer goods and cosmetics, hygiene products and household chemicals. Eko Holding is involved primarily in retail sale of fast moving consumer goods.

In the course of proceedings, the Office decided that market analyses were necessary, as well as the examination of relations between the company that takes over the other entity and the shops operating within the franchise and partner networks. The analyses revealed strong ties between Eurocash and the Delikatesy Centrum network. Therefore, the Office of Competition and Consumer Protection took into account the shops under this brand when evaluating the market strength of Eurocash.

The acquired material shows that the concentration may restrict competition on three local markets where FMCG are sold, within a radius of up to one kilometre from the shops of Eko Holding in: Chróścice (Opolskie Voivodeship), Gniewczyna Łańcucka (Podkarpackie Voivodeship) and Zarzecze (Podkarpackie Voivodeship).

In cases where there is a reasonable likelihood of competition being substantially reduced as a result of a concentration, the President of the Office of Competition and Consumer Protection presents the enterprise or enterprises participating in concentration with his objections. They include a justification and do not prejudge the final outcome of proceedings.

Under the law, undertakings have 14 days to respond to the objections, but may request a two-week extension of that time limit.

More information for the media:

The Office of Competition and Consumer Protection Press Office
pl. Powstańców Warszawy 1, 00-950 Warsaw
Phone: 22 55 60 430, 55 60 345
E-mail: biuroprasowe@uokik.gov.pl

Twitter: @UOKiKgovPL