The TCA published its reasoned decision in relation to approved on 09.02.2017 acquisition of Tesco Kipa Kitle Pazarlama Ticaret Lojistik ve Gıda San. A.Ş. (TESCO KIPA) by Migros Ticaret A.Ş. (MIGROS) subject to conditions.
MIGROS is an undertaking, which currently operates in retail sector. Fast moving consumer goods (FMCG) constitute its primary product market. TESCO KIPA is also a FMCG retailer and operates mostly in the Aegean region of Turkey. Moreover, Anadolu Endüstri Holding A.Ş. (AEH), which owns MIGROS, is producing and selling beer and holding a dominant position in the beer market. AEH operates with the brand of Coca Cola and holds a dominant position in the coke-flavoured drinks market. Thus, acquisition of TESCO KIPA was determined by the TCA as strengthening the AEH’s dominant position in both markets and, therefore, there was a risk that AEH could exclude its competitors from the relevant markets. No significant competition concern was found in any other product markets.
Within this context, the TCA approved the transaction subject to conditions. MIGROS submitted the below commitments for the transaction to be approved:
• MIGROS to divest some of its markets which were subject to concentration in the Aegean region;
• the commitments to be revised in the light of the beer market developments and MIGROS to implement them accordingly;
• an expert to be appointed and supervise the implementation of the commitments; and
• Neither AEH, nor TESCO to exchange information of their competitors with each other at any point.
Sinan Lahur
