The Competition and Consumer Protection Commission (CCPC) has cleared, subject to a number of legally binding commitments, the proposed acquisition by BWG Foods Unlimited Company (BWG) of the entire issued share capital, and thus sole control, of Tuffy Wholesale Limited (Tuffy Wholesale).<\/p>\n
BWG is involved in the wholesale distribution of food and grocery goods to its affiliated stores and to stores operated by independent retailers. Tuffy Wholesale is an Irish-owned wholesale business and a member of Stonehouse Marketing Limited (Stonehouse) and Gala Retail Services Limited (GRSL). It is engaged in the wholesale distribution of tobacco products, confectionery, soft drinks, alcohol, chilled foods and general grocery products to retail grocery stores, hospitality, schools, universities and hospitals.<\/p>\n
The CCPC\u2019s determination follows an investigation to establish whether the proposed acquisition could lead to a substantial lessening of competition for goods or services in the State.<\/p>\n
During this investigation, the CCPC identified potential concerns should the proposed acquisition take place. These concerns were that through BWG\u2019s ownership of Tuffy Wholesale, BWG, could potentially obtain access to commercially sensitive information relating to GRSL or Stonehouse. This sharing of such information would constitute a breach of section 4(1) of the Competition Act 2002, as amended.<\/p>\n
To address these concerns, BWG proposed a number of binding commitments including that BWG would divest fully, Tuffy Wholesales\u2019 shareholdings in Stonehouse and GRSL. This would prevent the potential for the exchange of commercially sensitive information between BWG, Stonehouse and\/or GRSL.<\/p>\n
Having considered the commitments given by BWG, the CCPC has determined that the proposed acquisition will not substantially lessen competition and, therefore, the proposed acquisition can be put into effect. The CCPC took the commitment into account in the determination and the commitments form part of the basis of the CCPC\u2019s determination to clear the proposed acquisition, and so are legally binding on BWG.<\/p>\n
The CCPC will publish the full determination on its website no later than 60 working days after the date of the determination and after allowing the parties the opportunity to request that confidential information be removed from the published version.<\/p>\n