After Coop Norway thumbed up 2.5 billion for 533 ICA stores Monday, the competition authorities consider whether to approve the sale. Here they will have to make an assessment of whether the new grocery giant will get too big market share in the country.
44 places in Norway will Ica and Coop get over 70 percent of the local market. This means that they may be forced to sell stores, newspaper VG and E24.no.
According to VG, there are four places in Nordmore that it may be appropriate for the Competition Authority to look into: Tingvoll and Aure center and Foldfjorden and Vihals in Aure. In Tingvoll and Aure center will Coop and ICA together have 100 percent of the market, while Coop Vihals is so close its stores in Kjørsvikbugen that they can be considered to be in the same market. Coop in Foldfjorden will have to be considered in relation to the other grocery stores that the new grocery giant will own Aure.
There are no clear rules or percentage limits, but it made an individual assessment of each case. The criteria Competition Authority uses a drive of 7.5 minutes in urban areas and increasingly longer run the more sparsely populated it is: 25 minutes as the longest distance. This means for example that one can put a suit on shop in a village and create a ring that is 25 minutes away by car. So they count up shops in the area and calculate the market share on the basis of number of stores and their sales
– There is certainly some shops that we will be required to dispose of, but it is early to say anything about what it is, says Coop CEO Svein Fanebust VG.
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