In anticipation of a potential merger with Profi Rom Food, Romanian grocery retailer Mega Image has proposed measures to ensure a competitive retail market.
The company aims to allay concerns raised by the Romanian Competition Council regarding the acquisition's impact on suppliers and market dominance, according to Romanian daily Ziarul Financiar.
Key aspects of Mega Image's commitments include clear rules for suppliers to join and leave the Mega Image/Profi Rom Food network; and fair and unbiased assessment of products based on quality and safety standards.
Additional safeguards will be provided for suppliers contributing a significant portion of their revenue to the Mega Image/Profi Rom Food networks, including extended notification periods and support for addressing non-conformities. Mega Image also commits to maintaining predictable and stable commercial relationships with suppliers.
Ahold Delhaize, Mega Image’s parent company, claims the proposed rules will ensure market stability and predictability for current and future partners of both Mega Image and Profi Rom Food.
However, the measures focus only on supplier protection and do not focus on the sale of several stores in particular areas where the combined network of the two retail chains exceeds a certain dominant position.
Comments From Suppliers And Competitors
The Competition Council has invited comments from suppliers and competitors to assess the potential implications of the merger. The regulator will make a final decision after reviewing these comments.
The €1.3 billion takeover of Profi Rom Food by Ahold Delhaize from Mid Europa Partners poses challenges due to Mega Image's existing strong position in both wholesale procurement and retail markets in Romania.
Renowned for its extensive product range and competitive pricing, Profi Rom Food operates a network of over 1,650 stores nationwide.
The acquisition of Profi Rom Food will significantly expand Ahold Delhaize's presence in Romania, doubling the size of its existing Mega Image business. This combination will enable Ahold Delhaize to better serve both urban and rural areas in Romania.
