The Autorité de la concurrence has approved (28 November) Intermarché’s acquisition of 200 former Casino group stores, contingent on the divestiture of 11 locations to maintain fair competition in local markets. The decision, announced on November 28, 2024, follows an extensive investigation into the potential competitive impact of the €1.1 billion deal in France’s food retail sector.
Key Findings
The Autorité granted Intermarché a temporary waiver in February 2024, allowing the acquisition to proceed while it conducted its competitive analysis. After reviewing the transaction, the Autorité identified concerns in 11 local areas where Intermarché’s increased market share could harm competition, leading to reduced options and higher prices for consumers.
These areas include Arc-lès-Gray, Bagnères-de-Luchon, Lambesc, and Solliès-Pont, among others. The Autorité determined that Intermarché’s dominance in these regions could limit consumer choice and weaken competition in food retail.
Divestitures to Address Competition Risks
To address these concerns, Intermarché has committed to divesting 11 stores, either to competitors or, in one instance, from its own portfolio. The divestitures aim to ensure that alternative retailers remain in the affected regions, safeguarding consumer interests.
This latest approval builds on a previous Autorité decision in January 2024, which cleared Intermarché’s acquisition of 61 Casino stores, subject to divestitures of three locations to Carrefour.
Broader Implications
While the Autorité ruled out concerns over Intermarché’s increased purchasing power in upstream supply markets, the decision highlights the regulator’s focus on ensuring healthy competition in local retail markets.
Intermarché, part of the Les Mousquetaires group, is a major player in France’s food retail sector, operating banners such as Intermarché, Netto, and Les Comptoirs de la Bio. Its acquisition of the Casino stores represents a significant expansion, but one that will be closely monitored to ensure compliance with the conditions set by the Autorité.
By requiring these divestitures, the Autorité aims to protect consumer choice and market diversity in France’s evolving retail landscape.
