Romania's Competition Council expresses concerns about Schwarz group taking over local retailer La Cocoș

The Competition Council has outlined a series of concerns related to the transaction through which the Schwarz group, which operates the Kaufland and Lidl store chains in Romania, intends to take over the La Cocoș stores, according to a press release quoted by Economica.net. It subsequently invited the buyer to propose a set of measures that would dissipate the concerns..

Following the analysis carried out, the competition authority said it found that the operation raises problems both in the retail market and in the market for the purchase of current consumer products, mainly food.

"We want to preserve La Cocoș's business model, based on low margins and low prices for consumers. Therefore, our main concern is that the format and low price policy could be changed following the acquisition, which could lead to an increase in prices, affecting consumers," said Bogdan Chirițoiu, president of the Competition Council.

To address these concerns, the Schwarz group has the possibility to submit commitment proposals to the competition authority, which will be analysed and evaluated in order to identify appropriate solutions, said the Council.

"We recall that the competition authority is analysing the transaction through which the Schwarz group intends to take over the La Cocoș stores, to establish compatibility with a normal competitive environment," the institution also indicated.

(Photo source: the company)