Pet supplies: the Autorité unconditionally clears the takeover of Zoomalia by Holding Nicole (“JMT Le Royaume des Animaux”)

The parties to the transaction

Holding Nicole heads a group specialising in the retail distribution of pet supplies in France, through a network of 123 franchised pet stores trading under the “JMT Le Royaume des Animaux” banner. The company also operates a purchasing centre that supplies its stores.

Zoomalia is also active in the retail distribution of pet supplies, with a website and mobile application and a network of 39 pet stores trading under the “Zoomalia” banner.

The Autorité was able to rule out any risk of harm to competition from the transaction in the markets concerned

As part of its examination of the merger, the Autorité defined – for the first time in a merger control decision – a market for the retail distribution of pet supplies.

In particular, the Autorité assessed the effects of the transaction on local markets for the distribution of pet supplies, insofar as consumers primarily buy supplies for their pets (including food) in physical stores near their homes, despite those same products being available online.

The Autorité was able to rule out any risk of harm to competition in the catchment areas concerned, given the limited market shares of the entity after the transaction and the presence of sufficient alternatives (in various formats: pet stores, garden centres or farm supply stores).

On the basis the transaction is not likely to harm competition on the markets concerned, the Autorité de la concurrence cleared the transaction unconditionally.