The Romanian Competition Council has identified several competition concerns regarding the Schwarz Group’s proposed acquisition of La Cocoș, a local retail chain. Schwarz operates the Kaufland and Lidl supermarket networks in Romania.
Following its initial assessment, the authority found that the transaction could raise competition issues in both the retail market and the procurement of everyday consumer goods, primarily food products.
According to the Council, the Schwarz Group is already active through its two major retail chains in all the local markets where La Cocoș currently operates or plans to operate. As a result, the merger could lead to a strengthening of Schwarz’s market position and a reduction in consumer choice.
The authority also warned that the transaction could negatively affect suppliers, some of whom derive up to 90% of their sales from La Cocoș.
Bogdan Chirițoiu, President of the Competition Council, emphasized the importance of preserving La Cocoș’s business model, known for low margins and affordable prices:
“We want La Cocoș’s business model—based on low margins and low prices—to be maintained. Our main concern is that this format and pricing strategy might change following the acquisition, which could lead to higher prices and harm consumers,” Chirițoiu stated.
The Council has invited the Schwarz Group to submit commitments aimed at addressing the identified concerns. These proposals will be evaluated to determine whether appropriate remedies can ensure the transaction’s compatibility with a competitive market environment.
The investigation into the proposed acquisition remains ongoing.