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Supermarket chain Jan Linders acquires three locations of rival Jumbo

21-11-2018

Dutch supermarket chain Jan Linders will acquire three locations of rival chain Jumbo in the southern towns of Eindhoven, Reusel, and Veghel. This is the result of the acquisition of Emté supermarkets by rival chains Jumbo and Coop. In June, the Netherlands Authority for Consumes and Markets (ACM) cleared this acquisition under the condition that these three locations would be sold to a competitor.

Jumbo suggested Jan Linders to ACM as a prospective buyer of the three locations. Jan Linders is a supermarket chain with locations in the east and south of the Netherlands. With the mandatory sale of these three locations, consumers will continue to have sufficient, competitive options in their neighborhoods. ACM has cleared the sale of said locations to Jan Linders.

Supermarket mergers and ACM

ACM regularly assesses mergers of supermarket chains. Several years ago, ACM studied the effects of such mergers, including the effects of mandatory sales of locations. In towns where locations had to be sold to competitors, competition between chains did not go down. In fact, one of the benefits for consumers was that the selection of products in those locations actually increased.

ACM's merger control

ACM enforces fair competition between companies, and prevents the abuse of market power. When assessing mergers or acquisitions, ACM assesses in advance whether companies that wish to acquire or merge with another company do not gain too much market power. By doing so, ACM protects both competition and consumers.

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