CCPC obtains commitments from BWG to secure approval for proposed acquisition of 4 Aces Wholesale
May 2, 2018
Following an extensive investigation, the Competition and Consumer Protection Commission (CCPC) has today cleared the proposed acquisition of 4 Aces Wholesale Limited (“4 Aces”) by BWG Foods Unlimited Company (“BWG”), subject to a number of binding commitments.
Following notification on 31 January 2018, the CCPC undertook an in-depth investigation to establish whether the proposed transaction would result in a substantial lessening of competition in any market for goods or services in the State. In the course of the investigation, the CCPC identified a potential competition concern in relation to access to competitively sensitive information, arising from 4 Ace’s relationship with Stonehouse Marketing Limited and Gala Retail Services Limited. To address these concerns, BWG agreed to submit commitments to the CCPC, which included;
- A divestment commitment
- A firewall commitment
- A confidentiality commitment
The divestment commitment will ensure that BWG divests itself fully of 4 Aces’ shareholding in Stonehouse. The confidentiality and firewall commitments are intended to prevent the exchange of commercially sensitive information post-transaction.
Following detailed consideration and further analysis, the CCPC concluded that these commitments, which were taken into account as part of its determination, were appropriate and effective in addressing its competition concerns. Further details of the CCPC’s announcement are available here
The CCPC will publish detailed reasons for its determination in due course, after allowing the parties the opportunity to request the removal of confidential information from the published version.
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