• UOKiK has approved the takeover of control over the owner of Mila store chain by Eurocash.
• The proceedings conducted and the market study demonstrated that the transaction shall not result in a restriction of competition.
• Consumers will still be offered a large choice of stores.

The activities of the undertakings involved in the concentration scheme overlap in the retailing of fast-moving consumer goods (FMCG). The undertakings run both traditional stores with the area of less than 350 sq. m., and large area ones

(350-2,000 m2). Eurocash is an organiser of retail chains such as Delikatesy Centrum, Groszek and Lewiatan. It is also involved in wholesale of FMCG. The Mila chain is owned by Domelius registered in Cyprus.

The UOKiK ordered that the second stage of the proceedings be conducted. It was necessary to perform a market study and estimate the undertakings’ share in the places where their activity overlaps. The UOKiK asked about it 16 undertakings which compete with the participants of the concentration scheme. A potential threat to competition could take place primarily on the FMCG market.

The analysis of this case and the decisions issued by UOKiK to date demonstrate that the competition between the stores is asymmetric. Traditional outlets have to compete with large-area ones, which, in turn, do not have to take into account the competition of smaller stores. The chains compete with each other on local markets. The larger ones - within a 10-15 minute drive, while the smaller ones - within the radius of up to one kilometer.

“The UOKiK’s findings suggest that the competition will not be compromised in any town where Eurocash and Domelius stores operate. The undertakings will have to compete there with other sellers. It also means that consumers will still be offered a large choice of stores. Consequently, we approved the concentration” – says Michał Holeksa,Vice-President of UOKiK.

According to the provisions of applicable laws, a concentration scheme is subject to notification to the antitrust authority if it involves undertakings whose aggregate turnover generated in the preceding year exceeded EUR 1 billion worldwide or EUR 50 million in Poland.

The decisions approving the concentration expire if the transaction is not completed within 2 years of the adoption thereof. The UOKiK website publishes information on all concentration-related antitrust proceedings conducted by the Office. More information about the principles governing mergers can be found in a dedicated paper.

Additional information for the media:

UOKiK Press Office 
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Tel. 695 902 088
Email: biuroprasowe@uokik.gov.pl

Twitter: @UOKiKgovPL