The competition authority found the transaction raises issues in both the retail trade market and the market for the acquisition of fast-moving consumer goods (FMCG), which are predominantly food products. The Schwarz Group is already present through its Kaufland and Lidl stores in all the local markets where La Cocoș currently operates or plans to operate.

Consequently, the deal could consolidate the resulting entity's market position and reduce the options available to consumers. Furthermore, the operation might negatively impact suppliers, as for some of them, sales to La Cocoș can represent up to 90% of their turnover.

Bogdan Chirițoiu, President of the Competition Council, said: "We want the La Cocoș business model, based on low margins and low prices for consumers, to be preserved. Therefore, our main concern is that the format and the low-price policy could be changed after the acquisition, which could lead to a price increase, affecting consumers."

The Schwarz Group has the option to submit commitment proposals to the competition authority, which will then be analysed and evaluated to identify suitable solutions.

The Competition Council is currently analysing the transaction to determine its compatibility with a normal competitive environment. The authority is also awaiting potential observations from suppliers and/or competitors regarding the presented competition concerns. The deadline for submitting observations is not mentioned.