Somerfield c-store deal may change competition rules
Issues statement on Safeway compact deal
The Competition Commission is reviewing its policy to separate supermarkets and convenience stores when considering takeovers in the grocery trade.
The commission has published an issues statement on the Somerfield’s acquisition late last year of the 114 Safeway Compact stores from Morrisons.
The Office of Fair Trading said in March it had identified 23 stores, all but one of them mid-range supermarkets, where it is thought the deal raised local competition concerns.
In publishing the issues statement, which is an invitation for interested parties to submit detailed evdience which will form the basis of an inquiry, the commission has said that it will consider “whether it is appropriate to distinguish between one-stop shops, mid-range stores and convenience stores in assessing the effect of the acquisition”.
The separation of the different formats when considering competition issues has enabled operators such as Tesco and Sainsbury’s to build market share through the acquisition of convenience chains. Groups including the Association of Convenience Stores have called for the regulation guidelines to be reviewed.
The commission said it will also consider any effects of the acquisition at a national level, as well as local issues. Anyone wishing to comment has until May 27.
