New Arcaplanet Group must relinquish stores

AGCM, the Italian competition authority, has published its ruling regarding the proposed merger of Arcaplanet and Maxi Zoo. Although the authority has given the merger the green light in principle, it has made this conditional on the owners of the future Arcaplanet Group disposing of up to 70 stores to third parties. This is because the merger could jeopardise competition in the pet supplies sector. The stores to be relinquished are located mainly in northern Italy.
Fressnapf had already reported the fundamental approval of the competition authority on its website a few days ago (see PET worldwide newsletter dated 10 March), but without giving any details.
Cinven, majority shareholder of the leading Italian pet store chain Arcaplanet, and Europe's leading pet store chain Fressnapf, which is the third biggest player in the Italian pet supplies market with Maxi Zoo Italia, agreed last June to create a new joint corporate group. Cinven was to receive a holding of between 60 and 65 per cent and Fressnapf would have between 30 and 35 per cent. At the end of November, the competition authority blocked the merger because the new company would have a market share of 60 to 65 per cent. This would have been a "significant obstacle to competition in retail outlets for pet products".
You can read the bulletin of the competition authority here.