Tesco Ireland must sell off Joyce’s in Oranmore as part of CCPC acquisition approval

Tesco says it welcomes decision and will begin the process to rebrand and redesign the Joyce’s Supermarkets as Tesco stores on a phased basis

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8 June 2022 | 0

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Tesco’s acquisition of Joyce’s Supermarkets has been cleared by the Competition and Consumer Protection Commission (CCPC), subject to a number of legally binding commitments.

The CCPC’s clearance would see Tesco purchase Joyce’s stores in the Galway area, but the grocery giant will be required to sell off the Joyce’s Oranmore supermarket to a suitable purchaser.

Following notification to the CCPC in December 2021, the CCPC carried out a preliminary investigation of the proposed acquisition and concluded that a full investigation was required to establish if the proposed transaction could lead to a substantial lessening of competition in the State.

The CCPC’s full investigation, which began in April 2022, identified potential competition concerns relating to the provision of goods in the grocery retail sector in the Co. Galway area. These concerns related to the number of alternative effective competitor supermarkets that would be available to consumers in the Oranmore area following the proposed acquisition.

To address these concerns, Tesco committed to divesting Joyce’s supermarket in Oranmore, Co. Galway as a going concern to a suitable purchaser, who will be subject to CCPC approval.

The CCPC states that Tesco has also committed not to carry out any act which may have a significant adverse impact on the supermarket before its sale and, not attempt to acquire the business back for a period of time following its sale. To ensure compliance with these commitments, an independent monitoring trustee will be appointed.

Following detailed consideration, and having taken into account the above commitments given by Tesco Ireland, the CCPC has determined that the proposed acquisition will not substantially lessen competition and can therefore be put into effect.

The CCPC will publish its full determination on its website no later than 60 working days after the date of the determination and after allowing the parties the opportunity to request that confidential information be removed from the published version.

In a press statement, Tesco Ireland said it welcomed the CCPC’s decision.

“Working with the Joyce family, Tesco will now move forward to complete the transaction and thereafter begin the process to rebrand and redesign the Joyce’s Supermarkets as Tesco stores on a phased basis. During this period we will be delighted to welcome employees from Joyce’s stores to the Tesco team,” the group stated.

“A condition of the approval from the CCPC is that Tesco divests the Joyce’s supermarket in Oranmore. Tesco will comply with this condition ensuring employees are best supported during the transition.”

“As we celebrate 25 years of Tesco in Ireland, the approval of this acquisition is an exciting opportunity to continue to grow our business for the future; bringing great value, quality and broad range of products and services to the customers and communities of Galway City and County,” said Natasha Adams, CEO, Tesco Ireland.

 

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