Romania's competition body says Ahold Delhaize's takeover of Profi poses challenges

Ahold Delhaize taking over Romanian retail chain Profi from Mid Europa Partners poses multiple challenges due to the strong position achieved by the buyer, which already operates local retail chain Mega Image, on both wholesale procurement and retail markets, Romania's competition body commentedon August 14.

The Competition Council also said it is open to hearing any comments the suppliers and/or competitors may have regarding the competition issues raised by the merger.

The EUR 1.3 billion deal, announced by the parties last year, still awaits the competition council's permit.

Ahold Delhaize said in a response published by Ziarul Financiar that the group is discussing a number of measures aimed at addressing the concerns expressed by the latter with the competition body.

"Ahold Delhaize and Mega Image are currently in detailed discussions with the competition authority to remove the concerns mentioned in the respective press release," the company said.

In some local markets, where the two chains are active, the merger may result in a reduced range of options for food products, the competition body argues.

Also, the transaction could generate negative effects on the activity of some suppliers considering, on the one hand, the reduction of the number of purchasing companies and, on the other hand, the consolidation of Mega Image's position in the procurement market.

(Photo: Profi)