The Competition Council is submitting for public debate the commitments proposed by Delhaize “The Lion” Nederland B.V. (Mega Image) to address the competition concerns identified in the supplier product procurement market, in the context of the acquisition of Profi Rom Food S.R.L.
Following the analysis conducted by the competition authority, concerns have arisen regarding the potential effects this operation could have on competition in the local retail market for fast-moving consumer goods, predominantly food, and on the supplier product procurement market at the national level.
The proposed commitments involve the implementation of procedures outlining the rules for listing and delisting suppliers within the Mega Image/Profi network, regardless of whether they sell food or non-food products.
“This is the first time we are imposing conditions related to listing/delisting due to the scale of the transaction and the implementation of the European Directive on unfair commercial practices in the supply chain, transposed into national law by Law 81. Therefore, it is crucial for all companies supplying products to the two store chains to send us their comments regarding the commitments proposed by Mega Image. We will carefully review all received comments and evaluate the proposed commitments to ensure a fair competitive environment for all parties involved,” said Bogdan Chirițoiu, President of the Competition Council.
As part of the commitments, Mega Image undertakes to apply to all Mega Image and/or Profi suppliers a procedure that establishes the conditions for accessing the stores of the two networks, as well as the criteria they must meet to avoid being delisted. Clear delisting deadlines and the obligation to notify suppliers will also be provided.
Additionally, Mega Image will implement a special procedure for relevant suppliers, specifically those whose products account for over 20% of their turnover with the two networks involved. They commit not to delist/remove these suppliers’ products from the network unless under clearly defined conditions, such as legal requirements or if the products become irrelevant in the market, with demand dropping substantially.
The procedure for all suppliers will apply indefinitely, while the procedure for relevant suppliers will apply for two years from the transaction’s completion and will be updated after the first year.
“Mega Image’s proposed commitments are published on the Competition Council’s website at: http://www.consiliulconcurentei.ro.
The Competition Council invites interested individuals or legal entities to submit observations on the commitments proposed by Mega Image by November 4, 2024, via email at bunuri.consum@consiliulconcurentei.ro or by mail to the Competition Council at Piaţa Presei Libere nr. 1, corp D1, sector 1, Bucharest, postal code 013701,” says the relevant authority in a press release.
A year ago, Ahold Delhaize, a global players food retailer, which currently owns 19 brands globally, including Mega Image, announced that it has reached an agreement on the acquisition of the company Profi Rom Food, which operates the network of Profi stores in Romania, from MidEuropa.
In August this year, the Competition Council also expressed a series of competitive concerns regarding the transaction through which Delhaize “The Lion” Nederland B.V. (Mega Image) is acquiring Profi Rom Food S.R.L.