The Romanian Competition Council conditionally approved on December 4 the deal through which the Dutch-Belgian group Ahold Delhaize takes over 100% of the shares of Romanian grocery retailer Profi from MidEuropa. As this was the last condition to be met, the parties said they would now proceed to closing, which is planned for early January 2025.

The acquisition will increase Ahold Delhaize's existing Romanian business, which operates under the Mega Image brand and has 977 stores, predominantly in urban areas. Thus, to address market competition concerns, the Competition Council authorized the deal on some conditions.

For example, Ahold Delhaize will divest 87 stores in 44 localities where its Mega Image brand overlaps with Profi. These stores will remain operational under new ownership to ensure continued options for consumers. Commercial spaces in affected areas will also be made available to third parties through independent real estate agencies.

Profi and Mega Image have committed to transparent supplier procedures, including clear rules for listing and delisting, maintaining commercial terms for suppliers through 2025, and providing volume forecasts for key suppliers. These measures aim to support over 600 small and medium-sized suppliers impacted by the acquisition.

The Competition Council said it would monitor the implementation of these commitments to ensure a competitive retail market and safeguard supplier and consumer interests.

"This is the largest transaction in the food retail sector that we have overseen, and we have implemented unprecedented measures at the national level, inspired by European practices. Food retail is a priority sector for us. We have taken numerous actions in this field, including imposing fines, closely monitoring, and analyzing merger and acquisition operations. Our goal is to maintain a strong competitive environment so that prices do not increase, which are currently, on average, the lowest in the European Union despite inflationary pressures," stated Bogdan Chirițoiu, President of the Romanian Competition Council.

Profi, Romania's largest private employer with over 28,000 employees and 1,750 own and partner stores, said it would benefit from Ahold Delhaize's global expertise, complementing Mega Image's presence in the Romanian market. 

Claude Sarrailh, CEO of Ahold Delhaize Europe & Indonesia, said: "I am pleased with this confirmation of the regulatory authorities, and we look forward to welcoming the Profi team to our family of great local brands as of closing. […] Our teams are prepared for the next steps with the aim of a smooth transition for the Profi team after closing."  

Profi generated EUR 2.7 billion in sales in the twelve months ending June 2024.

irina.marica@romania-insider.com

(Photo source: Profi)