Following Ahold Group’s announced acquisition of Tesco retail stores in the Czech Republic, the Office for the Protection of Competition has received multiple public submissions and objections regarding the transaction. In response to mounting public interest, the authority clarified how corporate mergers are formally evaluated and noted that proceedings have not yet officially begun.

Under established competition law, the Office cannot launch an administrative review on its own initiative. A formal investigation begins exclusively after the acquirer submits an official proposal. Furthermore, merger review mandates apply only when specific financial thresholds are met—typically when the combined annual turnover of merging entities in the Czech Republic exceeds CZK 1.5 billion and at least two participating companies reach individual domestic turnovers above CZK 250 million. Alternatively, mandatory notification applies if one party achieves a domestic turnover over CZK 1.5 billion while the other achieves the same threshold globally.

Once a valid proposal is received, the Office analyzes the transaction’s impact across relevant national and local markets. Evaluators assess shifts in market share, concentration levels, and the relative bargaining strength of competitors, suppliers, and consumers. For retail grocery chains, local impact is scrutinized using specific travel distance radiuses around store locations. Standard initial reviews take 20 to 30 calendar days, though complex cases can extend into a secondary phase lasting an additional four months.

Regarding the proposed Ahold-Tesco deal, no official application has been filed with the Czech authority. Given the pan-European scope of both parent corporations, primary jurisdiction for approval may actually fall to the European Commission under EU Merger Regulations. However, if European authorities take initial jurisdiction, national agencies retain the right to request a referral to review localized impacts within their own borders. The Office confirmed it stands ready to request such a referral to ensure thorough evaluation of the Czech retail market.