12.03.2025 | French competition authority
On October 25, 2023, the European Commission referred the acquisition of the French operations of the Louis Delhaize group by Carrefour to the French competition authority, citing its expertise in the food retail sector. Carrefour notified the authority of its planned acquisition on June 3, 2024, and was granted a derogation from the suspensive effect of merger control, allowing the transaction to proceed while awaiting the authority's decision.
After reviewing the transaction, the French competition authority cleared Carrefour's acquisition, but imposed conditions requiring the divestiture of seven stores and the termination of a franchise agreement with a competing banner. This was aimed at ensuring sufficient alternatives for consumers and maintaining competition in the market for everyday consumer goods.
The authority found no significant competition concerns in most areas but identified risks in eight local markets where Carrefour would enhance its market power without credible alternatives. The identified areas included Soissons, Vichy, Villers-Semeuse, Rots, Nancy, Publier, Les Pavillons-sous-Bois, and Charleville-Mézières.
To address these concerns, Carrefour proposed commitments that included divesting stores and a shopping center, which the authority will monitor to ensure effective competition. The divestitures are intended to prevent store closures and instead facilitate takeovers by competitors, ensuring a diverse offering for consumers.
The authority will also approve the buyers of the divested stores to ensure they can provide a credible alternative to Carrefour, maintaining the viability of the businesses and safeguarding consumer interests.
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