MERGERS: AMO SR approved the merger of the undertaking RENAULT RETAIL GROUP and the part of the undertaking KESTLER, spol. s r. o.

26.02.2019
On 5 February 2019 the Antimonopoly Office of the Slovak Republic, the Division of Concentrations, (hereafter "the Office") approved the merger which, according to the merger notification, is grounded in the acquisition of indirect exclusive control by the undertaking RENAULT RETAIL GROUP, France (hereafter "RRG") over the part of the assets of the undertaking KESTLER, spol. s r. o., Bratislava (hereafter "Kestler"). 

The undertaking RRG belongs to the economic group of Renault (hereafter "Renault Group"). The companies of Renault Group are primarily engaged in the area of designing, producing, distributing and selling passenger and light commercial vehicles, in the area of producing, distributing and selling original automotive components and accessories, while providing financial services relating to selling motor vehicles.
 
The part of the undertaking Kestler that is going to be acquired consists of assets (precisely defined in documentation), which are necessary for operating car dealerships.

Both parties to the merger are active in the retail sale of new cars. In assessing this horizontal overlap, the Office took into account the fact that Renault Group operates in the territory of the Slovak Republic only on a specific part of the retail sale market of cars, with the company Kestler serving this part only in a small degree. At the same time, the Office took into account the position of the brand name of Renault in the sale of the vehicles of all brand names. Based on the aforementioned, the Office came to the conclusion that the horizontal overlap created by the merger does not give rise to competition concerns. With regard to the wholesale of new cars, from the documentation submitted to the Office, it found out that the parties to the merger do not operate at the same level of wholesale market.
 
Between the parties to the merger, there is a vertical relationship in the supply of new Renault and Dacia brands cars as well as original spare parts for these cars. In particular, with regard to the fact that Renault Group in the territory of the Slovak Republic, except for the undertaking Kestler, has concluded a contract with other 10 retailers, most of which operate in a different geographical region, also with regard to the share of wholesale purchases by the undertaking Kestler in the total sales of Renault Group distributor, and also with regard to the share of the undertaking Kestler in the sale of new cars of the brands stated, considering the intra-brand competition, this vertical link does not give rise to competition concerns from the point of view of the restriction of access to entrances nor the restriction of access to customers.
 
After assessing the documentation and information obtained by the Office during the administrative proceedings, it came to the conclusion that the merger in question is in compliance with the provision of the Article 12 Paragraph 1 of the Act on Protection of Competition, as it will not significantly impede effective competition on the relevant market, in particular as the result of the creation or strengthening of dominant position.
 
The decision came into force on 21 February 2019.
 
 
Last update:26.02.2019