MERGERS: AMO SR approved the merger of undertakings Legrand France S.A. and EMOS CZ group, a.s.
AMO SR approved a merger grounded in the acquisition of exclusive control by undertaking Legrand France S.A. over undertaking EMOS CZ group, a.s., and the group of its subsidiary companies.
The group operates in the territory of the Slovak Republic mainly through company LEGRAND Slovensko, s.r.o., Bratislava. It mainly sells switches and sockets, input systems for family houses, uninterruptible power supplies (UPS), extension cables, adapters, plugs, pop-up boxes and devices for smart homes.
In terms of distribution, the group Legrand operates in the territory of the Slovak Republic mainly through the B2B sales of its products/solutions to the distributors of electronic equipment, the distributors of data and IT technologies. The part of group Legrand´s revenues, in the territory of the Slovak Republic, consists of sales aimed at end customers (B2C) through the sales of the so-called DIY retail chains, retailers or the third parties´ e-shops. In Slovakia, the group Legrand does not operate its own e-shop nor its own stone stores.
The group EMOS primarily focuses on the sale and the wholesale of electrical products in the region of Central and Eastern Europe. It has a large number of products in its product range, with light sources, extension cables and batteries being the most important products.
The group EMOS uses the following distribution channels: direct selling through its sales representatives, supplying the chains and networks, including retailers, DIY chains, supermarkets, through specialized wholesalers, online stores and an e-shop operated by company EMOS SK - an online store in the Slovak Republic, that is operated on the basis of B2C, i. e. the goods are sold directly to end customers. The direct sales through sales representatives and the sales through chains/networks are the most important distribution channels of the group EMOS.
Both merging parties are active in the field of selling low voltage electrical equipment (hereafter "LV products"). The activities of merging parties hardly overlap in the horizontal area.
The market for the retail sale of consumer goods and the market for the production and wholesale of LV products are vertically interconnected markets. The Office assessed a vertical relationship between the merging parties, assessing all the possible alternatives of relevant markets, and it concluded that there were no competition concerns, neither in the form of restriction of access to inputs in the supply market for the production and sale of LV products nor in relation to customers in the downstream market for the retail sale of consumer goods.
After evaluating documentation and information obtained, the Office concluded that the merger assessed is in accordance with the Article 11 Paragraph 1 of the Act on Protection of Competition, as it will not significantly impede effective competition in the relevant market, in particular as the result of creation or strengthening of dominant position.
The decision came into force on 7 February 2022.