Norgesgruppen’s acquisition of Vitusapotek requires closer assessment

The Norwegian Competition Authority is concerned, among other things, about Norgesgruppen’s position as an owner, co-owner, and attractive tenant for commercial properties.

This is the Norwegian Competition Authority’s preliminary assessment. Today, the Authority has sent a so-called 25-day notice to the companies and will, in the next phase, conduct further and more thorough assessments of the competitive effects of the acquisition.

Concerns also relate to non-prescription medicines and retail pharmacy products. These are sold across markets, and the acquisition may therefore lead to weakened competition between the parties for these products.

– Norgesgruppen and Vitusapotek operate in two important markets for norwegian consumers: groceries and pharmacies. The Norwegian Competition Authority is now conducting a thorough assessment of the acquisition, says Beate Milford Berrefjord, Director of the Department for Food, Retail, and Health.

To assess the competitive effects of the acquisition, the Norwegian Competition Authority has collected and analysed information from both companies, as well as from players in both the grocery and pharmacy markets.

– Access to attractive premises is important, including in the pharmacy market. Our preliminary assessment is that Norgesgruppen’s position in markets or segments for leasing premises enables them to exercise market power, says Project manager Kathrine Tvedt Lavik.