The competition watchdog has cleared Tesco’s plan to take over Galway supermarket business Joyce’s, but it has told the supermarket giant to sell off one of the stores.

In April, the Competition and Consumer Protection Commission (CCPC) said that it would carry out a full investigation into Tesco Ireland’s proposed acquisition of Patrick C Joyce Supermarket (Headford), which has ten stores.

The CCPC’s clearance of the proposed deal would see Tesco buy Joyce’s stores in the Galway area, but it will have to sell off the Joyce’s Oranmore supermarket to a suitable buyer, who will have to be approved by the commission.

Potential concerns

The watchdog said that its probe had identified potential competition concerns linked to the provision of goods in the grocery sector in the County Galway area.

“These concerns related to the number of alternative effective competitor supermarkets that would be available to consumers in the Oranmore area following the proposed acquisition,” it stated.

The CCPC said that Tesco had also committed not to carry out any act that might have “a significant adverse impact” on the supermarket before its sale.

Tesco is also prohibited from trying to buy the business back for a period after its sale.

To ensure compliance with these commitments, an independent monitoring trustee will be appointed.