Romania's Competition Council Raises Concerns Over Schwarz Group's Acquisition of La Cocoș
The Competition Council has expressed concerns regarding the takeover of La Cocoș stores by the Schwarz group, which operates the Kaufland and Lidl chains in Romania, according to a press release cited by Economica.net. The authority invited the buyer to propose measures to mitigate these concerns.
Market Impact and Key Issues
After reviewing the transaction, the council identified potential problems in both the retail sector and the market for food and other everyday consumer products. The main worry is that the acquisition might alter La Cocoș's business model, which currently relies on low margins and affordable prices.
"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.
Next Steps and Possible Solutions
The Schwarz group has the option to submit commitment proposals to address the Competition Council’s concerns. These proposals will be evaluated to find suitable solutions that ensure a fair competitive environment.
"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 council stated.
Summary
The Competition Council warns that Schwarz group’s acquisition of La Cocoș could disrupt the market by affecting La Cocoș’s low-price business model, potentially leading to price increases and impacting consumers.
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