MERGERS : AHOLD'S ACQUISITION OF FLEVO GETS GREEN LIGHT.
The proposed acquisition of the Dutch online retailer Flevo Deelnemingen III by Koninklijke Ahold N.V, also of the Netherlands and specialised in supermarkets, was given the green light by the European Commission, on 7 May. It will cost Ahold 350 million to diversify its clientele and expand its offering.
Despite overlaps in the online retailing of books, toys, games, music and films in the Netherlands, where Flevo operates through its subsidiary bol.com and Ahold through its online forum albert.nl, the EU executive concluded that the transaction would not create competition concerns due to the parties' limited combined market presence. Its investigation showed that their market share would increase only slightly as a result of the transaction and that there would still be strong competitors on the markets concerned.
Ahold is the Dutch parent company of an international group of supermarkets based in Europe and the United States. In the Netherlands, Ahold is active via its supermarket chain Albert Hein, its specialty shops offering beauty and health care products (Etos) and its wine and spirits chain (Gall & Gall), as well as its online forum albert.nl offering products of all these brands. It nevertheless earns 60% of its turnover in the United States.
Flevo is a Dutch holding company active via bol.com in the online retailing of books, e-books, DVDs, toys, music, games, software, consumer electronics, home appliances and computers. It is active in the Netherlands and Belgium.
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|Date:||May 8, 2012|
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