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https://www.kkv.fi/en/current-issues/press-releases/2019/13.9.2019-the-time-limit-for-in-depth-investigation-into-keskos-proposed-acquisition-of-heinon-tukku-has-been-extended-to-31-october/
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The time limit for in-depth investigation into Kesko’s proposed acquisition of Heinon Tukku has been extended to 31 October

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13.9.2019

The Market Court has extended the time limit for further proceedings regarding the proposed merger in which Kesko Oyj would purchase Heinon Tukku Oy until 31 October 2019. The acquisition is being investigated by the Finnish Competition and Consumer Authority (FCCA). The application for the extension was submitted by the FCCA at Kesko’s request.

On 15 May 2019, the FCCA was notified of an arrangement in which Kesko would acquire Heinon Tukku Oy. The Kespro business unit operates in the daily consumer goods sector of Kesko and provides food services and wholesale services in Finland. Heinon Tukku is a daily consumer goods wholesale business, which operates in Finland and whose main customers are operators in the food service sector. Food service customers include restaurants, hotels, catering businesses, service stations and kiosks as well as public sector customers such as schools, daycare centres and healthcare units.

On 17 June 2019, the FCCA opened in-depth investigation into the merger because based on the agency’s initial investigations, it may have a negative impact on competition for food service customers within the daily consumer goods wholesale sector. If no extension had been granted, the time limit for the in-depth investigation would have been on 17 September 2019.

Kesko has requested the FCCA to apply for an extension for the time limit for the proceedings until the end of October. Taking into account the scope of the analysis concerning the effects of the merger on competition and the current stage of the proceedings, the FCCA and the notifying party estimate that a delay shorter than this would not be sufficient to conclude the proceedings.

Read more:

FCCA opens in-depth investigation into Kesko’s proposed acquisition of Heinon Tukku (FCCA’s press release 18 June 2019)

More information:

Director Sanna Syrjälä, tel. +358 (0)29 505 3385
Senior Specialist Laura Kauppila, tel. +358 (0)29 505 3335
firstname.lastname@kkv.fi

On application of the Finnish Competition and Consumer Authority, the Market Court may extend the three-month time limit for the further proceedings of mergers for which notification has been given before 17 June 2019 by a maximum of two months. For mergers for which notification has been given after 17 June 2019, the Market Court may extend the time limit by a maximum of 46 working days. As the FCCA was notified of the merger on 15 May 2019, the old time limits laid down in the Competition Act are applied.

The FCCA may approve the merger as such, approve it conditionally or propose that the Market Court prohibit the deal.

Read more about merger control.


Updated 18.9.2019 Print
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Updated 18.9.2019 Print
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