The Autorité de la concurrence clears, subject to the divestiture of stores, the takeover of 71 former Chauss’expo stores by the Chaussea group
On 6 March 2024, Chaussea notified the Autorité de la concurrence of its plan to take over 71 stores formerly operated under the Chauss’expo banner.
The parties to the transaction
Chaussea operates stores offering affordable footwear for men, women and children, primarily in France. The 71 Chauss’expo stores taken over as part of the transaction are also active in the same sector.
The transaction is part of court-ordered liquidation proceedings (liquidation judiciaire), at the end of which the Lille Métropole Commercial Court decided, on 13 March 2024, to assign the aforementioned assets to Chaussea.
The competition risks identified
Chaussea and Chauss’expo are, prior to the transaction, two key players in the affordable town footwear retail market, where large specialist retailers (such as Besson, Gémo and La Halle) operate alongside major food retailers.
At the local level, the Autorité examined whether the planned takeover by Chaussea was likely to restrict competition in areas with stores operated by both banners.
At the end of its analysis, the Autorité identified competition risks in the catchment areas surrounding the Chauss’expo in Audun-le-Tiche (57), Clermont-l’Hérault (34), Dunkirk – Petite Synthe and Quaëdypre (59), Hirsingue (68), Gruchet-le-Valasse (76), Les Abrets-en-Dauphiné (38), Lexy (54), Pont-Audemer (27), Roye (80) and Sarrebourg (57).
In each of the aforementioned areas, the transaction was likely to affect competition and there was a risk of price rises or a reduced offering to the detriment of consumers, given the significant combined market share of the parties and the lack of sufficient alternatives.
The remedies proposed
To address the competition concerns, Chaussea has undertaken to divest stores in each of the areas concerned to one or more competitors.
The stores concerned are the following:
| Area concerned | Stores concerned | Address |
|---|---|---|
| 1. Audun-le-Tiche | Chaussea (formerly Chauss’expo) | Rue du Maréchal Foch, ZAC de Alzette, 57 390 Audun-le-Tiche |
| or* | Chaussea | ZAC des Trois Frontières, 54 350 Mont-Saint-Martin |
| 2. Clermont l’Hérault | Chaussea (formerly Chauss’expo) | 10 rue du Mourvèdre, 34 800 Clermont l’Hérault |
| or | Chaussea | 8 rue du Servent, Zone d’activité des Tannes Basses, 34 800 Clermont l’Hérault |
| 3. Dunkirk – Petite Synthe | Chaussea (formerly Chauss’expo) | Rue du Kruysbellaert, 59 640 Dunkirk |
| or | Chaussea | 59 Quai Wilson, avenue Maurice Berteaux, 59 640 Dunkirk |
| 4. Quaëdypre | Chaussea (formerly Chauss’expo) | 5 route Nationale, 59 380 Quaëdypre |
| or | Chaussea | 1 rue Eugène Pottier, 59 210 Coudekerque-Branche |
| 5. Gruchet-le-Valasse | Chaussea (formerly Chauss’expo) | Rue de l’Abbaye, 76 210 Gruchet-le-Valasse |
| or | Chaussea | Rue de l’Abbaye, 76 210 Gruchet-le-Valasse |
| 6. Hirsingue | Chaussea (formerly Chauss’expo) | 7 rue de Bettendorf, 68 560 Hirsingue |
| or | Chaussea | 7 rue de Givet, 68 130 Altkirch |
| 7. Les Abrets-en-Dauphiné | Chaussea (formerly Chauss’expo) | Rue de la République, CC le Petit Bailly, 38 490 Les Abrets-en-Dauphiné |
| or | Chaussea (formerly Chauss’expo) | ZI de la Baronnie, 73 330 le Pont de Beauvoisin |
| or | Chaussea | ZC les Vallons de Saint Jean D1006, 38 110 Saint-Jean-de-Soudain |
| 8. Lexy | Chaussea (formerly Chauss’expo) | A3B Espace du Barrois Lexypark, 54 720 Lexy |
| or | Chaussea | ZAC des Trois Frontières, 54 350 Mont-Saint-Martin |
| 9. Pont Audemer | Chaussea (formerly Chauss’expo) | Rue du Maquis Surcouf, 27 500 Pont-Audemer |
| or | Chaussea | ZC impasse des Burets, 27 500 Pont-Audemer |
| 10. Roye | Chaussea (formerly Chauss’expo) | Rue du Colonel Sorlin, 80 700 Roye |
| or | Chaussea | 6 rue Lucie Aubrac, 80 500 Montdidier |
| 11. Sarrebourg | Chaussea (formerly Chauss’expo) | Rue des Terrasses, ZAC Les Terrasses de la Sarre, 57 400 Sarrebourg |
| or | Chaussea | 14 rue Dessirier, 57 400 Sarrebourg |
* “OR” indicates that Chaussea may divest either of the stores indicated for each of the areas concerned. Where an offer is received for both of the stores, Chaussea may decide which store to divest.
The commitments will ensure that sufficient competition is maintained and that consumer interests are protected in the local retail markets for affordable town footwear.
The proposed buyers will need to be approved by the Autorité, which will ensure their ability to provide a credible affordable footwear retailing alternative in each of the areas concerned.
Store divestitures do not mean store closures, but takeovers with a change of banner
The commitments are intended to safeguard adequate local competition.
The aim is to allow a competitor to take over the stores and their activities in order to safeguard competition in the area concerned, thereby ensuring that consumers have a diversified offering in terms of prices and products. The party cleared to carry out the transaction must present to the Autorité buyers capable of ensuring a valid takeover and then providing effective competition. Once the buyers have been examined, the Autorité can issue an approval, which will clear the effective divestiture of the store in question.
The divestitures do not therefore entail the closure of the stores, but a takeover with a change of banner.
What is a derogation from the suspensive effect?
While the effective conclusion of a merger is subject to clearance by the Autorité de la concurrence, in certain exceptional circumstances, duly argued by the parties, the Autorité may grant a derogation enabling the parties to finalise part or all of the transaction without waiting for the clearance decision, in order to allow for the continuation of the business activities.
The granting of such a derogation is exceptional. A derogation may be granted in cases where takeover offers are presented for companies subject to court-ordered liquidation (liquidation judiciaire) or receivership (redressement judiciaire), as was the case here.
However, the granting of a derogation by the Autorité is without prejudice to the final decision taken at the end of the investigation.
