Kesko Oy purchased Tuko Oy in may 1996. The acquisition gives Kesko a market share of 60 per cent of the Finnish perishables sector. After the purchase the Finnish authorities monitoring competition submitted this deal to the European Union Comission for examination.
As part of the examination process under way, the EU Commission has issued a Statement of Objections concerning the Kesko-Tuko deal. According to the Statement " The preliminary view of the Commission is that the concentration could lead to the creation or strengthening of dominant positions through which effective competition in Finland would be significantly impeded. The concentration may therefore be declared incompatible with the common market under the Merger Regulation".
Kesko will give its statement of defence and negotiate with the Commission about changes to the arrangement in order that the Commission can accept the deal.
The Commission will give its final decision on this matter by 27 November 1996.
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21 October 1996