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Referral of part of a merger to the French and Spanish national Authorities

United Kingdom
26/01/2000
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In the decision on the Carrefour/Promodès merger, the Commission followed an unusual procedural route: it decided to authorise the operation subject to undertakings offered by the parties, while simultaneously referring the analysis of local areas to the French and Spanish authorities.

Effectively, the Commission agreed there is a need for the merger to be handled successively by its own officials and by the national authorities of the country affected by the operation.

Within four months of the Commission’s referral, the French and Spanish authorities will issue a report on the conclusion of their examination. Before the Commission, Carrefour committed itself to sell its 42% stake in its competitor Cora to one or several independent competitors. This was agreed in order to alleviate fears that such a strong minority stake could unduly influence major decisions within Cora. Pending this divestment, the management of Carrefour’s participation is conferred upon a trustee in order to avert any influence of the new group on Cora.

The parties also committed themselves jointly not to modify any current supply contracts with small and medium-sized enterprises. Carrefour also undertook not to unilaterally disrupt its commercial relationships with certain producers supplying both Carrefour and Promodès for a period of three years from the date of the Commission’s decision. (IP/00/74, 26 January 2000)

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