The Polish anti-monopoly regulator UOKiK has approved the takeover of the Polish branch of the British retailer Tesco by its Danish competitor, Salling Group, operator of the Netto discount store chain.
In 2019, the Tesco group decided to withdraw from Poland amid a wider crisis in its core business. According to UOKiK, the merger will not limit competition in Poland.
"The proceedings showed that in each of the cities surveyed, Netto will have to compete with other discount stores, supermarkets and hypermarkets after the acquisition of Tesco’s facilities. This means that after the transaction the structure of these markets will not change to the detriment of consumers, suppliers or entrepreneurs operating smaller store", said Tomasz Chróstny, the president of UOKiK.
The Salling Group runs some 1,100 discount stores, including 386 in Poland and the rest in Denmark and Germany. Tesco Poland owns 320 stores, two distribution centres and 23 petrol stations, but the Salling Group will take over 301 stores, 14 petrol stations, the distribution centres and the head office.
The Salling Group's motion was first filed with the European Commission, which decided that the decision should be taken by the Polish regulator.
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