{"id":75149,"date":"2016-10-19T06:00:13","date_gmt":"2016-10-19T06:00:13","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=30d9763a7612b2bb854dd30efdecfd9f"},"modified":"2016-10-19T06:00:13","modified_gmt":"2016-10-19T06:00:13","slug":"press-release-convenience-store-acquisition-may-give-rise-to-competition-concerns","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=75149","title":{"rendered":"Press release: Convenience store acquisition may give rise to competition concerns"},"content":{"rendered":"
\n

In July and September 2016, Co-operative Foodstores Ltd (Co-op) bought 8 My Local convenience stores after their previous owners went into administration. Co-op already owns grocery stores in all 8 local areas, therefore the Competition and Markets Authority (CMA<\/abbr>) examined the risk of competition overlaps in these areas.<\/p>\n

The CMA<\/abbr> found that the acquisition gives rise to competition concerns only in one area \u2013 Widnes, Cheshire \u2013 where the Co-op already owns 3 convenience stores in close proximity to each other.<\/p>\n

Both the My Local store and Co-op\u2019s existing stores competed closely prior to the Co-op buying the My Local store. The CMA<\/abbr> found that, following the acquisition, only one other convenience store in Widnes is likely to compete effectively with Co-op. Other grocery stores in the area will exercise less of a competitive constraint because they sell different products and because customers would need to travel further to reach those stores.<\/p>\n

Co-op can avoid the acquisition being referred for an in-depth investigation if it can offer a remedy to address the CMA<\/abbr>\u2019s competition concerns in the Widnes area. Co-op has until 26 October to do so.<\/p>\n

Sheldon Mills, CMA<\/abbr> Senior Director of Mergers and decision maker in this case, said:<\/p>\n

\n

In most of the areas where Co-op acquired My Local stores, there was sufficient rivalry from other grocery retailers. However, in Widnes before the merger, Co-op had a strong presence with 3 convenience stores in the local area. Therefore, we believe that the merger may lead to competition concerns.<\/p>\n<\/blockquote>\n

Notes for editors<\/h3>\n
    \n
  1. \n

    The CMA<\/abbr> is the UK\u2019s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law. For more information on the CMA<\/abbr> see our homepage<\/a> or follow us on Twitter @CMAgovuk<\/a>, Flickr<\/a> and LinkedIn<\/a>. Sign up to our email alerts<\/a> to receive updates on merger cases.<\/p>\n<\/li>\n

  2. \n

    Under the Enterprise Act 2002 (the Act) the CMA<\/abbr> has a duty to make a merger reference, resulting in an in-depth phase 2 merger investigation, if the CMA<\/abbr> believes that it is or may be the case that a \u2018relevant merger situation\u2019 has been created, or arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation; and that the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.<\/p>\n<\/li>\n

  3. \n

    Under the Act a \u2018relevant merger situation\u2019 is created if 2 or more enterprises have ceased to be distinct enterprises; and the value of the turnover in the United Kingdom of the enterprise being taken over exceeds \u00a370 million (\u2018the turnover test\u2019) or as a result of the transaction, in relation to the supply of goods or services of any description, a 25% share of supply in the UK (or a substantial part of the UK) is created or enhanced (\u2018the share of supply test\u2019).<\/p>\n<\/li>\n

  4. \n

    The My Local convenience store estate was previously owned and operated by ML Convenience Ltd and MLCG Limited.<\/p>\n<\/li>\n

  5. \n

    The CMA<\/abbr> considers that it is under a duty to make a phase 2 merger reference in this case under the Act. However, the duty to refer is not exercised while the CMA<\/abbr> is considering whether to accept undertakings in lieu of a reference. Co-op has until 26 October to offer undertakings that might be accepted by the CMA<\/abbr>. If no undertaking is offered or accepted, then the CMA<\/abbr> will by 2 November refer the merger for a phase 2 merger investigation.<\/p>\n<\/li>\n

  6. \n

    All the CMA<\/abbr>\u2019s functions in phase 2 merger investigations are performed by inquiry groups chosen from the CMA<\/abbr>\u2019s panel members. The appointed inquiry group are the decision makers on merger investigations. The CMA<\/abbr>\u2019s panel members come from a variety of backgrounds, including economics, law, accountancy and\/or business; the membership of an inquiry group usually reflects a mix of expertise and experience (including industry experience).<\/p>\n<\/li>\n

  7. \n

    The text of this decision will be placed on the case page<\/a> in due course.<\/p>\n<\/li>\n

  8. \n

    Media enquiries should be directed to Neil Kernohan (neil.kernohan@cma.gsi.gov.uk<\/a>, 020 3738 6170).<\/p>\n<\/li>\n<\/ol>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    Co-op\u2019s acquisition of the My Local convenience store in Widnes, Cheshire may give rise to competition concerns.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/75149"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=75149"}],"version-history":[{"count":0,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/75149\/revisions"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=75149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=75149"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=75149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}