The Bundeskartellamt, Germany's competition authority, has given the green light for JC Switzerland Holding AG to acquire SiNN GmbH, which is currently in insolvency proceedings. This acquisition is significant as JC Switzerland Holding AG is part of the Peek & Cloppenburg group, a major player in the textile retail market.

Andreas Mundt, President of the Bundeskartellamt, noted that Peek & Cloppenburg holds a leading position in the brick-and-mortar textile retail sector, particularly in men's outerwear through its 'Anson’s' brand. The merger could potentially enhance P&C's market share in cities where both companies operate. However, the authority's investigation revealed that consumers would still have ample alternatives from other large multi-brand stores and smaller retailers, as well as brand stores from major manufacturers.

The investigation also highlighted that not all consumers view vertically integrated fashion chains, such as H&M and Zara, as direct competitors to the merging parties. This distinction is crucial in assessing the competitive landscape.

Peek & Cloppenburg operates 69 stores across Germany, while SiNN GmbH has 35 stores. The merger is expected to create overlaps in the market for women's and men's outerwear, particularly in North Rhine-Westphalia and the Rhine-Main region. However, the authority considered the competitive dynamics in smaller cities, where consumers often shop at larger retailers in nearby major cities.

Additionally, the impact of online retailing was a significant factor in the authority's decision. Online platforms like Zalando and the Otto Group are major competitors in the textile market, exerting considerable pressure on traditional brick-and-mortar retailers. Given these considerations, the merger was approved in the initial phase of the review process.