Romanian competition authority expresses concerns about takeover of Profi by Ahold Delhaize.
The planned takeover of the Romanian supermarket chain Profi by the Dutch Ahold Delhaize is encountering objections from the Romanian competition authority.
This was reported by the Belgian business newspaper De Tijd.
The authority fears that the acquisition, worth 1.3 billion euros, will significantly limit competition on the Romanian market.
Ahold Delhaize announced the 1.3 billion euro deal in October 2023. With the purchase of Profi, good for an annual turnover of around 2.5 billion euros, the listed group would gain 1,654 stores in the country. Ahold already has almost 1,000 stores in Romania with Mega Image.
If the takeover goes through, Ahold Delhaize will rise from sixth to second place on the list of largest supermarket groups in Romania. The combined turnover of Mega Image and Profi would amount to 4.6 billion euros, which would mean significant market dominance.
However, the Romanian competition watchdog has reservations about this concentration of power. According to the authority, Ahold Delhaize would become so dominant in certain regions that customers would have few or no alternatives, and suppliers would also come under pressure.
To better assess the impact of the takeover, the authority has sought help from other European competition authorities and also wants to hear the views of local farmers, competitors and consumer associations.
Ahold Delhaize has indicated that it is in discussions with the competition authority and is working on proposals to address the concerns. The company remains confident that the acquisition will ultimately be approved, but whether this will happen this year is uncertain.
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