FCCA removes Tuko-related conditions from Kesko Food and Suomen Lähikauppa merger decision

The conditions relating to Tuko Logistics Cooperative in the decision concerning the merger between Kesko Food Ltd and Suomen Lähikauppa Oy have become redundant.  The Finnish Competition and Consumer Authority (FCCA) removed them by its decision of 4 October 2016. The decision will not affect Kesko Foods obligation to sell Suomen Lähikauppa stores in 60 areas to competitors.

The FCCA approved a merger between Kesko Food and Suomen Lähikauppa subject to conditions 11 April 2016. Tuko was Suomen Lähikauppa’s primary supplier and logistics partner prior to the completion of the merger. In its merger decision, the FCCA endeavoured to alleviate competition problems in the procurement whole market for daily consumer goods and the HoReCa wholesale market by obligating Kesko Food to continue purchases from Tuko for a fixed period of 18 months.

Suomen Lähikauppa was also a member of Tuko. The conditions set by the FCCA for the merger required Suomen Lähikauppa to withdraw from membership in Tuko at the latest within a transitional period. Furthermore, the FCCA restricted the possibilities of Suomen Lähikauppa and Kesko Food to participate in decisions taken in Tuko.

Tuko and Kesko Food have reached consensus on the procurement and supply relationships between Suomen Lähikauppa and Tuko and on the conditions relating to Lähikauppa’s withdrawal from Tuko. The conditions relating to Tuko defined in the FCCA’s decision thus became redundant. The FCCA concludes that this constitutes a substantial cause, as referred to in section 30 of the Competition Act, on the basis of which the conditions can be removed.

Further information:
Hanna Kaiponen, Senior Research Officer, tel. +358 29 505 3620
Maarit Taurula, Head of Research, tel. +358 29 505 3381