Competition body clears grocery-sector deal
The competition watchdog has cleared a deal in the food and grocery distribution centre, subject to a number of legally binding commitments.
The Competition and Consumer Protection Commission (CCPC) said that BWG Foods had proposed the measures early in the review process to address any concerns about its proposed acquisition of Perry’s Cash and Carry.
BWG is involved in the wholesale distribution of food and grocery goods to its affiliated stores and to stores operated by independent retailers.
It also owns and licenses a range of retail grocery store brands through franchise agreements.
BWG a GRSL shareholder
Following its acquisition of 4 Aces Wholesale Limited in 2018, BWG is a shareholder of Gala Retail Services Limited (GRSL), which owns and licenses the Gala and YourStop retail grocery store brands.
Perry’s Cash and Carry is also involved in the wholesale distribution of food and grocery goods to the retail sector – including supermarkets, convenience stores, and forecourts, and the foodservice and hospitality sector.
It is also a shareholder in GRSL and in Stonehouse, a wholesaler-owned marketing and buying group.
Firewall protections
BWG’s binding commitments to the CCPC include the full divestment of Perry’s Cash and Carry’s shareholding in each of GRSL and Stonehouse.
Perry’s Cash and Carry’s ongoing business dealings with GRSL’s branded retail grocery stores will also be subject to information-sharing firewall protections that were put in place as a result of the CCPC’s approval of BWG’s acquisition of 4 Aces Wholesale in 2018.
The CCPC said that these commitments would prevent the sharing of competitively sensitive information between BWG and either Stonehouse or GRSL.