Competition watchdog approves BWG/4 Aces takeover
The competition authority has approved the takeover of the 4 Aces wholesale group by BWG, following an investigation into whether the deal would constitute a conflict of interest to any party. The concern was over the fact that through 4 Aces, BWG would be acting as wholesaler to certain stores within the Gala group, a competitor.
Print4 May 2018
The Competition and Consumer Protection Commission (CCPC) has given the go-ahead to BWG Group’s proposed acquisition of 4 Aces, the family-owned wholesaler serving more than 1,500 retailers across the midlands. The deal has been approved subject to a number of binding commitments by both parties, the Commission said.
These commitments come following the CCPC’s concerns about access to sensitive information for either party in the deal. When it was first announced in January, there was some concern about BWG owning a wholesale group that supplies Gala stores – a direct competitor to BWG’s symbol groups which include Spar, EuroSpar, Mace and Londis.
The CCPC undertook an investigation into the matter, to establish whether the proposed transaction would result in a “substantial lessening of competition in any market for goods or services in the State”. Indeed, the investigation identified a concern in relation to access to competitively sensitive information, regarding 4 Ace’s relationship with Stonehouse Marketing ltd. and Gala Retail Services.
In response to these concerns, BWG agreed to certain commitments to the CCPC, which included a “firewall commitment” (effectively blocking access to the information), a confidentiality agreement and a divestment agreement, which will ensure that BWG divests itself fully of 4 Aces’ shareholding in Stonehouse.
Following detailed consideration and further analysis, the CCPC concluded that the commitments were appropriate and effective in addressing its competition concerns. A full report on the investigation and the decision will be published in due course.
At the time of the initial announcement, BWG boss Leo Crawford called 4 Aces an excellent business which provided a first-class service. “The management team at 4 Aces will make an excellent addition to our business,” Crawford said. “We look forward to contributing to the continued success of the Gala retailers who are currently well served by 4 Aces.”
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