The Office of Competition and Customer Protection (UOKiK) issued a conditional clearance for Eurocash to take over control of Eko Holding. The taking-over company will have to sell three shops: two in the Podkarpackie Voivodeship and one in the Opolskie Voivodeship.

Eurocash deals with, inter alia, wholesale and retail sale of fast moving consumer goods (FMCG), tobacco and press products as well as organising franchise and partner networks - ABC Sklepy po sąsiedzku, Delikatesy Centrum, Groszek, Euro Sklep, Gama, Lewiatan and Drogerie Koliber, which bring together entrepreneurs involved in retail sale of fast moving consumer articles, cosmetics, sanitary articles and household chemicals. Eko Holding deals mainly with retail sale of fast moving consumer goods.

In the course of the proceedings, the Office has carried out two market analyses in which it surveyed nearly 60 entrepreneurs – retail shops operating in local markets and organisers of franchise and partner networks. The need for a detailed analysis resulted in submitting the case to the second phase of the proceedings.

The collected material showed that the concentration may lead to a restriction of competition in three local retail markets selling FMCG within one kilometre from the Eko Holding shops in Chróścice (Opolskie Voivodeship), Gniewczyna Łańcucka (Podkarpackie Voivodeship) and Zarzecze (Podkarpackie Voivodeship). Therefore, the Office has issued objections to Eurocash as regards the concentration.

After analysis of the reply provided by the company, the UOKiK decided that in this case it is possible to issue a conditional decision. Eurocash is obliged to sell the Eko Holding shops in Chróścice, Gniewczyna Łańcucka and Zarzecze. The buyer may neither belong to the Eurocash capital group nor be linked with it by means of a franchise agreement. It must guarantee that the existing activity of the shops will be continued and have organisational and economic facilities to pursue this activity. In addition, the buyer will have to be accepted by the Office. Through the implementation of the imposed condition the concentration will not restrict competition.

According to the law, a transaction must be notified to the anti-monopoly office if it involves enterprises whose total turnover in the preceding year exceeded EUR 1 billion globally or EUR 50 million in Poland. While assessing the transaction, the President may give his consent to the concentration or make his consent subject to compliance with additional requirements by the entrepreneur. The issued decisions are valid for the period of two years. This is 24th decision since 2004, and fourth decision this year, imposing obligations on the entity reporting the transaction.

The decision issued is not legally valid. The reporting entity is entitled to appeal to Court of Competition and Consumer Protection. At the same time, we inform that the website of the Office provides information on all anti-monopoly concentration proceedings currently conducted by the Office.

We also inform, that as from 1 January 2017, the amount of the fee for submitting an application for the initiation of the antimonopoly proceedings in the concentration cases is going to be increased. The fee will be PLN 15 thousand. The applicant must pay the fee in cash at the cashier’s office or to the bank account of the tax office having jurisdiction over the registered office of the President of the Office. Currently, this is the First Tax Office Warszawa-Śródmieście, ul. Lindleya 14, 02-013 Warsaw. The account number may be obtained directly at the tax office.

Additional information for the media:

Biuro Prasowe UOKiK

pl. Powstańców Warszawy 1, 00-950 Warsaw

Phone: 22 55 60 430

E-mail: biuroprasowe@uokik.gov.pl

Twitter: @UOKiKgovPL