FAS: X5 GROUP CAN ACQUIRE THE VICTORIA RETAIL CHAIN IF A NUMBER OF CONDITIONS ARE MET

At the same time, the service took into account the willingness of the acquirer on an initiative basis to take on and extend additional social obligations to the acquired company

FAS Russia has granted the application of "Corporate Center X 5" LLC
for the acquisition of 100% of the shares in the authorized capital of "Victoria Baltia" LLC (Victoria retail chain), subject to the execution of the competition authority’s remedy.

Since the share of X5 Group exceeded 25% of the volume of all food products sold in monetary terms for 2022 within the boundaries of the Dolgoprudny city district of the Moscow Region, Victoria Baltia must transfer the retail facilities located on this territory to third parties before the transaction is completed.

The change of ownership should not negatively affect the counterparties of the Victoria retail chain. Therefore, FAS ordered to fulfill all contracts concluded by the acquired company. In addition, measures will be taken to simplify the access of socially important food products to the shelf. For a number of food products, retail chains will not impose special requirements on manufacturers for packaging, weight and grade. Suppliers of these products will not have to pay remuneration to stores for their implementation.

Also, the FAS Russia has ordered to extend voluntary price obligations existing in the X5 Group organization to the purchased retail chains. Thus, in Victoria stores, margins on certain items of socially significant food products within a year from the date of the transaction will also be set at a level not higher than 5% of the purchase price for several categories of goods (1) and not higher than 10% for the remaining categories of socially significant food necessities (2).

Compliance with the requirements of the antimonopoly remedy will ensure the preservation of competition in the retail markets and increase the availability of socially important food products for citizens. Its non-fulfillment entails administrative liability (3) and is the basis for invalidation of the transaction in court on the claim of the competition authority (4).

Reference:

(1) Margins at a level not higher than 10% of the purchase price will be set for at least one commodity item in each of the categories of goods included in the List of certain types of socially significant essential food products approved by the Decree of the Government of the Russian Federation dated July 15, 2010 No. 530, for which maximum permissible retail prices can be set.

(2) Margins at a level not exceeding 5% of the purchase price will be set for at least one commodity item in each of the following categories of food products: kefir, drinking milk, butter, cottage cheese, white cabbage, potatoes, onions, carrots, beets, granulated sugar, bread and bakery products.

(3) Part 2.3 of the Article 19.5 of the Code of Administrative Offences of the Russian Federation dated December 30, 2001 No. 195-FZ.

(4) Part 5 of the Article 34 of the Federal Law "On Protection of Competition" dated July 26, 2006 No. 135-FZ.