Assessment of proposed acquisition by Lidl Immobiliare Malta Limited of some of the buildings belonging to Said Investments Limited and leases belonging to Scotts Limited to operate ‘Lidl’ supermarkets from them

Abstract

1. The Office for Competition (hereinafter referred to as ‘the Office’) within the Malta Competition and Consumer Affairs Authority has opened an in-depth investigation to assess whether the proposed acquisition of Lidl Immobiliare Malta Limited (Purchaser) of some of the buildings belonging to Said Investments Limited (Vendor) and leases belonging to Scotts Limited (Tenant) is in line with the Control of Concentrations Regulations (Subsidiary Legislation 379.08).

2. If the parties’ request is acceded by the Office, Lidl Immobiliare Malta Limited will be acquiring the Scotts Supermarket in Burmarrad, the one in Sliema, the Żabbar grocery retail outlet as well as two divided portions of undeveloped land in Attard. The acquirer intends to lease out the above-mentioned properties to Lidl Malta Limited to operate grocery retail activities.

3. The Office has serious doubts regarding the compatibility of the proposed concentration with the Control of Concentrations Regulations and believes that it may limit competition in the grocery retail market. This is primarily because the proposed concentration could lead to horizontal unilateral effects, both existing and future constraints, harming competition and consumer welfare in the process. Consequently, the proposed concentration may lead to a substantial lessening of competition in the grocery retail market, especially at the local level. For the reasons above, the Office requires detailed market data to be able to carry out its assessment and quantify the effects of this acquisition on competition. Accordingly, the Office is hereby initiating proceedings for an in-depth investigation in accordance with regulation 6(1)(iii) of the Control of Concentrations Regulations.