Regulator to scrutinise purchase of shops chain

Monday 12 December 2016

The regulator has decided not to approve the proposed acquisition of the Costcutter stores by Sandpiper, until it has investigated it more thoroughly.

It says the deal has generated an unprecedented number of comments since it was proposed last month, and now it needs to make sure that it won't reduce choice, value and access to products for consumers.

CICRA Chief Executive, Michael Byrne, said: “CICRA considers a number of transactions a year with the vast majority passed at the first stage following an initial review of the evidence provided.

“However there are exceptions where further review is required to check if acquisitions or mergers might not be in consumers’ best interests – this is one of those cases.”

Mr Byrne said CICRA would be seeking to ensure it is satisfied the sale will not adversely impact Jersey consumers through a reduction of competition.

“It is important we understand thoroughly the impact this particular sale would have on local people if approved.

“In particular we want to ensure the grocery market in Jersey works in the best interests of consumers and transactions such as this do not risk reducing value, choice and access to services. 

“We will endeavour to reach a final decision within our administrative target of six months,” he said.

CICRA has the power to approve an acquisition, allow the acquisition to proceed subject to conditions, or refuse to allow the acquisition.