THE Competition Watchdog opens a deeper investigation into Tesco’s proposed acquisition of Galway-based Joyce’s Supermarkets chain.
The Competition and Consumer Protection Commission (CCPC) confirmed tonight that it is conducting a further inquiry, having launched its first inquiry last December when the acquisition was announced.
“Following an extensive preliminary investigation, the CCPC has determined that a full investigation is required to determine whether the proposed transaction could result in a material reduction in competition in the state,” the watchdog said.
“The CCPC will publish its Phase 1 decision no later than 60 working days from the date of the decision and after giving the parties the opportunity to request that confidential information be removed from the published version,” she added.
The British multiple buys all 10 stores owned and operated by the Joyce family. The Joyce family has owned the company for 70 years.
Tesco has announced that all stores will be rebranded as Tesco branches next year and will include services such as online shopping, click-and-collect, clothing and housewares.
The Joyce’s shops – including three branches in Galway City – employ around 500 people.
Joyce’s Supermarkets shields group sales, but they are likely to be at least 60 million euros a year. Even with a margin of around 2 percent, that would result in a pre-tax profit of at least 1.3 million euros.
The chain is run by Pat Joyce, who started his retail career after school and joined Tesco in London in 1979 where he completed a trainee management course.
Mr Joyce’s daughter, Aisling, is operations manager for the family chain, while a son, Patrick, runs the flagship outlet in Headford.
Mr Joyce said the family had “carefully considered” the Tesco takeover approach last December and were “very pleased to be passing our business on to an established brand”.
He said the acquisition would be “of significant benefit” to employees, suppliers and customers.
Then Tesco Ireland CEO Kari Daniels said the acquisition gave the retailer a platform to expand the brand in the west of Ireland. Tesco Ireland is now managed by Natasha Adams.
According to the latest data from research group Kantar, Tesco has a 21.3 per cent share of the Irish grocery market.
https://www.independent.ie/business/tescos-planned-buy-of-joyces-chain-to-be-probed-further-by-watchdog-41531285.html Tesco’s proposed purchase of Joyce’s chain is said to be further investigated by Watchdog