The Norwegian Competition Authority has approved Coop’s acquisition of Ica Norge with remedies. Coop has offered to sell 43 grocery stores to Bunnpris and 50 grocery stores to Norgesgruppen to avoid restricting competition.
The Competition Authority found that the merger could lead to a significant restriction of competition in 90 local markets. To avoid the anti-competitive effects, Coop offered to sell a total of 93 stores to respectively Bunnpris and Norgesgruppen. The completion of these sales is a prerequisite for the Competition Authority’s approval.
– This remedy protects national competition and consumer interests. Without the sale of stores, the acquisition would lead to restricted competition in a number of local markets, and it would also weaken competition in the national market, says Director General f Christine Meyer.
Coop has proposed remedies that eliminate these anti-competitive effects of the merger, and the Competition Authority has concluded that Coop’s choice of buyers – Bunnpris and Norgesgruppen – does not generate new competition problems.
– Therefore, we have approved the acquisition, says Meyer, adding that both Bunnpris and Coop strengthen their positions in the market, and that this could be positive for competition.
Comprehensive case – This has been a comprehensive and challenging case, says director Magnus Gabrielsen.
– Coop is purchasing approximately 550 stores from Ica. All the affected markets for these 550 stores have been analysed, since the impact on local competition has been an important part of our assessment.
– It has been important for us to avoid the anti-competitive effects that could arise with a merged Coop and Ica, and to avoid the resale of stores creating new competition problems, says Gabrielsen.