The President of UOKiK has given her consent to Eurocash to take over eight companies of Emperia Holding capital group. However, the transaction must be performed under certain obligations – the acquiring company shall be forced to sell 12 warehouses

The concentration control of undertakings by the President of UOKiK is to counteract consolidation which may result in a significant distortion, or even complete elimination of competition. A transaction is subject to notification to the Office if it involves undertakings whose total turnover in the year preceding the notification exceeded EUR 1 billion worldwide and EUR 50 million in Poland. The President of the Office may issue a consent or prohibit a concentration. Whenever a significant restriction of competition may occur, under the law, the consent to perform a transaction may be granted under certain obligations imposed on the transaction participants – e.g. selling the entire or a part of property, or divesting control over a given undertaking.

UOKiK received the notification of Eurocash concerning the intention of concentration. It regarded the acquisition of eight companies belonging to Emperia Holding capital group - Tradis, Detal Koncept, Euro Sklep, Partnerski Serwis Detaliczny, Lewiatan Zachód, Lewiatan Północ, Drogerie Koliber and Lewiatan Opole.

Eurocash deals with the wholesale of FMCG products (Fast Moving Consumer Goods). Moreover, it owns over 130 warehouses all over the country and is the leader of capital group whose companies conduct activity concerning inter alia the wholesale of tabacco products and alcoholic drinks as well as run among others Delikatesy Centrum and Abc Sklepy po sąsiedzku chain stores. The acquiring undertakings belong to Emperia Holding capital group. Tradis is the greatest entity in this group and deals with the wholesale of everyday products, available in approximately 60 warehouses. The other companies deal with the retail of FMCG products in their own outlets. Additionally, they run franchise and partnership chainstores such as Lewiatan, Groszek and Drogerie Koliber.

The agreement concluded between Eurocash and Emperia on 21st December 2010 provided the basis for the notification to UOKiK. The Office was informed that the transaction constitutes a part of Eurocash development strategy which assumes the development of outlets’ network. It shall allow the more effective competition with retail networks as well as on the wholesale trade market.

During the proceedings UOKiK carried out market inquiry, where the transaction participants’ operation had a common ground. Almost 800 undertakings were sent out a questionnaire concerning inter alia their incomes acquired from FMCG products’ wholesale.

The analysis of the Office proved that the intended transaction would result in disturbing competition on 20 local wholesale markets of FMCG products, where non-specialist warehouses would operate. However, the President of UOKiK decided that it is possible to impose obligations on the acquiring undertaking, whose fulfillment would eliminate anticompetitive effects of the transaction. Therefore, Eurocash shall be obliged (within 12 months of performing the transaction) to divest of its rights to 12 warehouses located in:Biała Podlaska, Brodnica, Gorzów Wielkopolski, Kopytów, Kraśnik, Łomża, Ostrowiec Świętokrzyski, Płock, Płońsk, Ryki, Suwałki and Zamość.

- The sale may be performed for the independent investor out of Eurocash group. Additionally, the entity must guarantee conducting the same trading activity as the warehouses to be sold – otherwise it will not be accepted by the Office – explained the President of UOKiK, Mrs. Małgorzata Krasnodębska-Tomkiel.

The Eurocash decision has been the third conditional consent issued by the President of UOKiK this year; there were 128 decisions on concentration control in total, including two decisions prohibiting the concentration.

Decisions granting the consent to implement the concentration shall expire if the transaction has not been perfomed within 2 years of its issuance. The information on all antimonopoly proceedings concerning concentration cases conducted by the Office is available at the Office’s website. For more information on principles for concentration, click the special elaboration.

Additional information for the media:
Małgorzata Cieloch, Spokesperson for UOKiK
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Tel. +48 22 827 28 92, 55 60 106, 55 60 430
faks +48 22 826 11 86
E-mail: malgorzata.cieloch@uokik.gov.pl