On 23 October 2018, the Finnish Competition and Consumer Authority (FCCA) approved the transaction by which Kesko Oyj acquires the entire business of K-Rauta Äimärautio from J & A Antikka Oy.
Kesko is a Finnish listed company that operates in Finland in the grocery trade, the building and technical trade and the car trade. Kesko with its subsidiaries and the independent K-retailers together form the K Group.
K-Rauta Äimärautio is a retailer-led hardware store that belongs to the K-Rauta chain and provides construction, renovation, yard and garden, interior decoration and home furnishing products and services to consumer and professional customers. The current retailer has terminated the chain contract related to K-Rauta Äimärautio.
The FCCA has concluded that the acquisition will not significantly impede effective competition on the Finnish market. The parties to the transaction represent mainly different links of the sales chain and have only minor horizontally overlapping operations in online retail. In addition, the arrangement is intended to be temporary, as Kesko intends to transfer the target to a new retailer as soon as possible.
The FCCA’s decision includes business secrets of the parties involved. The decision will be published once the business secrets have been removed.
- Research Officer Taru-Tuulia Tammi, tel. +358 (0)29 505 3024
According to the Competition Act, the FCCA must be notified of a transaction if the combined turnover of the parties to the corporate transaction exceeds 350 million euros and the turnover from Finland of at least two of the parties exceeds 20 million euros for both. The FCCA will approve a corporate transaction if it has none of the harmful impacts referred to in the Competition Act. The FCCA will intervene in corporate transactions if its investigations suggest that the acquisition substantially impedes effective competition on Finnish markets or a substantial part of the markets, particularly through the creation or reinforcement of a dominant market position.