The Spanish National Markets and Competition Commission (CNMC) has greenlit Decathlon’s acquisition of 18 Intersport assets, but the approval comes with strict strings attached. Because the transaction takes place within a bankruptcy proceeding, the antitrust authority stepped in to prevent a potential monopoly over sports retail in specific regional markets.
While Decathlon proactively offered a set of behavioral remedies to ease antitrust concerns, the CNMC deemed them insufficient. To protect market dynamics, the regulator has upgraded those proposals into mandatory conditions designed to pave the way for rival brands.
The Tenerife Monopoly Threat
The core of the CNMC’s concern centers heavily on the island of Tenerife, where Decathlon stood to absorb 15 of the 18 disputed assets. Most of these prime commercial spaces are located in highly coveted shopping centers. Due to the physical geographical limits and severe lack of available commercial real estate on the island, the regulator warned that the acquisition would effectively block rival sports retailers from establishing a retail footprint.
Without government intervention, the CNMC projected that the lack of local competition would directly result in a reduced variety of sporting goods—particularly from third-party brands that compete with Decathlon’s in-house lines. The regulator also flagged risks of diminished customer service quality, reduced geographical coverage, and a drop in localized retail innovation.
Decathlon’s Pledges and the CNMC’s Hard Conditions
To secure approval, Decathlon agreed to alter its retail layout on the island by operating only one store directly while actively promoting the entry of rival competitors into 13 other Tenerife locations for staggered windows of three, four, and five months. Furthermore, the retail giant committed to completely eliminating all current and future exclusivity clauses tied to its leases in Tenerife shopping centers.
To ensure this transition happens swiftly, the CNMC imposed additional binding conditions:
- Immediate Transparency: Decathlon must immediately contact local landlords and potential market competitors to actively facilitate the transfer of retail spaces to interested third parties.
- Time Extensions: The regulator has tacked on a mandatory two-month extension to the divestment window for one specific key asset to give outside buyers a fair shot at acquiring the space.
This authorization is not yet completely final. The CNMC has forwarded the decision to the Ministry of Economy, Trade, and Business, which will determine whether to escalate the matter to the Council of Ministers. The central government retains the right to review the merger based on broader public interest criteria that extend beyond strict antitrust enforcement.