13 January 2010: Distribution of DIY, decoration and gardening items
Subject to several conditions, the Autorité de la concurrence authorizes the acquisition of
the Passerelle group by Mr Bricolage
The Autorité de la concurrence has examined the acquisition of the Passerelle group by the Mr Bricolage group, both of which are active in the sector of the distribution of “do it yourself” (DIY), decoration and gardening items. While the operation results in no competition problems in the upstream supply market, the Autorité has ascertained, on the other hand, that it would significantly strengthen the presence of the Mr Bricolage group within certain trade areas.
In the end, the Autorité de la concurrence authorized the operation subject to commitments that will serve to remedy the identified competition problems within certain trade areas, in which the number of stores controlled by the group will have to be reduced.
The commitments of Mr Bricolage
The Mr Bricolage and Passerelle group networks consist of stores that are either owned outright or operated by members, located throughout France.
The acquisition of the Passerelle group by Mr Bricolage significantly strengthens the latter’s market power within 8 trade areas, in which the new entity’s stores will hold market shares in excess of 50% subsequent to the operation, without the remaining competitors being able to exert sufficient pressure such as to ensure that efficient competition is maintained.
To avoid the operation’s adverse effects on competition, Mr Bricolage has assumed two types of commitments intended to reduce, or do away, with any accumulation of market shares. On the one hand, it undertakes, within 7 trade areas (La Bresse, Lannion, Paimpol, Coulommiers, Auch, St Girons, Oléron) not to renew the contracts signed with certain of its members and, on the other hand, within a specific trade area, to sell one of its stores (Mende).
> Please consult the full text of the decision of 12 January 2010
