By Leos Rousek
PRAGUE--The Czech competition office UOHS Friday said that
Koninklijke Ahold N.V. (AH.AE) has to sell an unspecified number of
stores at four Czech cities to allow the Dutch retailer complete
its acquisition of SPAR shops in this central European country.
"In its preliminary ruling the office has concluded that this
(Ahold/SPAR) merger raises concerns about significant distortions
of competition at four (Czech) cities where the two retails have
overlaps and their combined market shares significantly exceed
40%," the UOHS said.
The Czech competition watchdog gave its preliminary approval for
the merger, citing sufficient evidence provided by Ahold that it
was working on selling businesses in the four Czech cities.
Ahold officials in Prague declined to name the four local cities
where the company will have to divest its stores.
Earlier Friday the Dutch retailer said it expected completion of
the merger transaction in the second half of the year.
Ahold currently ranks among the top five local Czech retailers
in revenue terms by operating 228 grocery supermarkets and 56
large-format stores, selling clothes and other goods along with
food products. SPAR, which has it has been losing money in the
Czech Republic for several years, operates 50 stores of various
sizes on the local market.
Write to Leos Rousek at leos.rousek@wsj.com, @LeoRousek
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