The French competition watchdog, the Autorité de la concurrence, has approved Carrefour’s acquisition of the French operations of the Louis Delhaize group, including Cora and Match stores, subject to conditions aimed at preserving competition in key local markets.
The green light comes with a requirement for Carrefour to divest seven stores and terminate a franchise agreement in favor of a competing banner. Additionally, Carrefour must sell a shopping center in the Charleville-Mézières area to ensure continued market competition. These measures are intended to prevent potential consumer harm, such as price increases or reduced service levels, in regions where Carrefour’s increased market power could limit choices.
Conditions for Clearance
Following an in-depth examination, the Autorité identified risks to competition in eight local markets, where Carrefour’s strengthened position could significantly impact consumer choice and pricing. To address these concerns, the company must:
- Divest seven stores located in Soissons, Vichy, Villers-Semeuse, Rots, Nancy, Publier, and Les Pavillons-sous-Bois.
- Terminate a franchise agreement in Vichy that currently operates under the Carrefour banner.
- Sell the Galimmo-owned shopping center adjacent to one of the affected stores in Charleville-Mézières.
The authority will oversee the implementation of these conditions and approve the new owners to ensure they provide a credible competitive alternative.
Background of the Transaction
Carrefour, one of France’s largest food retailers, announced plans to acquire 186 stores from the Louis Delhaize group in June 2024. The European Commission referred the case to the Autorité due to its sector expertise. Carrefour was granted a derogation allowing it to complete the acquisition before the competition authority’s final ruling, enabling store rebranding to proceed immediately. However, the clearance decision today imposes structural remedies to prevent anti-competitive effects.
Competition Concerns and Remedies
While the Autorité found no significant impact on Carrefour’s purchasing power in supply markets, it flagged concerns in certain local retail markets where competition could weaken. The required store divestitures are designed to ensure that consumers in these areas continue to benefit from sufficient competition and a diverse retail offering.
The sale of these stores does not mean closures but rather a change of ownership and brand, ensuring continued service while maintaining market competition.
Next Steps
Carrefour must now present suitable buyers for the stores and shopping center, who will be vetted by the Autorité to ensure their viability and ability to sustain competitive market conditions. The authority will closely monitor compliance with these commitments in the coming months to ensure a smooth transition and consumer protection.
The full decision (25-DCC-56) will be published in French in due course.
