Decision Nº M/03/001 from Competition and Consumer Protection Commission, 2003-03-13

• Court: Competition and Consumer Protection Commission (Ire)
• Parties: Express Checkout,Musgrave Group plc
• Date: 13 March 2003
• Decision Number: M/03/001
• Status: Cleared (Phase 1)
• Decision Date: 13 March 2003

Determination of the Competition Authority

Determination No. M/03/001 of the Competition Authority, dated 13 March

2003, under Section 21 of the Competition Act, 2002

Notification No. M/03/001 – Musgrave Limited / Express Check-out

Introduction

1. On 12 February 2003 the Competition Authority, in accordance with Section

18(1) of the Competition Act, 2002 (“the Act”) was notified, on a mandatory

basis, of a proposal whereby Musgrave Limited would acquire from Mr Joseph

Nally four supermarkets operating under the SuperValu brand in Kells, Leixlip,

Dunshaughlin and Ashbourne, together with a supermarket development in

Ratoath and an interest in a potential development site in Navan.

The Parties

2. Musgrave Limited (“Musgrave”), the purchaser, is beneficially wholly-owned by

Musgrave Group plc (“the Group”). The principal activity of the purchaser in

Ireland is the wholesale and retail distribution of food and general merchandise

through a franchise/licence arrangement with independent retailers who own and

operate supermarkets under the SuperValu and Centra brand names. The Group

also operates a cash and carry business, selling to independent non-aligned

retailers and traders. The Group has similar businesses in the UK and Spain.

3. Joseph William Nally, the vendor, is the 100% beneficial owner of Express

Check-out, an unlimited company. It acts as a holding company for a series of

limited and unlimited companies which are principally involved in the

supermarket business, operating under the SuperValu brand under franchise from

Musgrave.

4. The undertakings involved in the proposed acquisition are Musgrave Limited and

the following target companies (“the targets”) - Lofoten Ltd, Drakenberg Ltd,

Garrich Ltd, Berajan Ltd, Tyven Ltd, and their subsidiaries, Express Check-out

(Kells), Express Check-out (Leixlip), Lobinda Ltd, Express Check-out

(Dunshaughlin), Codami Ltd, Dictamin Ltd, Handby Ltd - which operate the

supermarkets and own the development sites that the purchaser wishes to acquire,

all located in Counties Meath and Kildare.

Analysis

Horizontal Effects

5. The proposed transaction would result in a vertical merger between an upstream

grocery wholesaling undertaking and a group of downstream grocery retail

outlets. As the only grocery retail outlets in the State owned by the purchaser are

in Galway and South Dublin, there is no horizontal aspect to this transaction.

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