Bundeskartellamt clears Globus/hela ProfiZentren merger subject to divestment obligation

The Bundeskartellamt has cleared the project notified by Globus Fachmärkte GmbH & Co. KG, St. Wendel, by which the latter intends to acquire the DIY business of the Distributa group, Saarlouis, subject to the obligation that it sells four DIY stores to another independent store operator.

The project concerns the takeover of 31 large building supplies and DIY markets (“hela Profizentren”) with a domestic turnover of more than 350 million euros. The merger produces overlaps between the Globus DIY markets and hela Profizentren in several regional sales markets, especially in the Saarland and the municipalities of Zweibrücken and Idar-Oberstein.

Whereas in most cases the project raises no concerns under merger control law, the concentration is likely to create a dominant position in four regional sales markets (“Merzig-Wadern”, “St. Wendel”, “Saarpfalz-Zweibrücken” and “Idar-Oberstein”). In order to satisfy the requirements for clearance the companies concerned have agreed to sell one DIY store in each of the regional markets concerned. This will lead to a considerable reduction of the joint market share of Globus/hela Profizentren while at the same time allowing competitors to enter the market or expand their own market positions.