CCPC requires binding commitments to clear Tesco Ireland’s proposed acquisition of Joyce’s Supermarkets
June 7, 2022
The Competition and Consumer Protection Commission (CCPC) has cleared, subject to a number of legally binding commitments, the proposed acquisition by Tesco Ireland Limited (Tesco) of sole control of Patrick C. Joyce Supermarket (Headford) Unlimited Company (Joyce’s).
The CCPC’s clearance of the proposed acquisition would see Tesco purchase Joyce’s stores in the Galway area but will be required to sell off the Joyce’s Oranmore supermarket to a suitable purchaser.
Following notification to the CCPC in December 2021, the CCPC carried out a preliminary investigation of the proposed acquisition and concluded that a full investigation was required to establish if the proposed transaction could lead to a substantial lessening of competition in the State.
The CCPC’s full investigation, which began in April 2022, identified potential competition concerns relating to the provision of goods in the grocery retail sector in the Co. Galway area. These concerns related to the number of alternative effective competitor supermarkets that would be available to consumers in the Oranmore area following the proposed acquisition.
To address these concerns, Tesco committed to divesting Joyce’s supermarket in Oranmore, Co. Galway as a going concern to a suitable purchaser, who will be subject to CCPC approval.
Tesco has also committed not to carry out any act which may have a significant adverse impact on the supermarket before its sale, and not attempt to acquire the business back for a period of time following its sale. To ensure compliance with these commitments, an independent monitoring trustee will be appointed.
Following detailed consideration, and having taken into account the above commitments given by Tesco Ireland, the CCPC has determined that the proposed acquisition will not substantially lessen competition and, therefore, the proposed acquisition can be put into effect.
The CCPC will publish its full determination on its website no later than 60 working days after the date of the determination and after allowing the parties the opportunity to request that confidential information be removed from the published version.
For more information, read the merger determination and the commitments.
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