1. News
July 18, 2016

French competition authority approves Fnac’s deal to acquire Darty

France's competition authority Autorité de la concurrence has approved Groupe Fnac’s proposed deal to acquire electronics and appliance retailer Darty.

France's competition authority Autorité de la concurrence has approved Groupe Fnac’s proposed deal to acquire electronics and appliance retailer Darty.

As part of the approval, the regulators have asked Fnac to sell six stores in Paris and the Parisian region to ensure healthy competition in the retail distribution of electronic products.

The stores to be sold by Fnac include the Belleville boulevard (Darty), the Italie 2 (Darty) and Beaugrenelle (Fnac) shopping centers, the Saint Ouen avenue (Darty) and the Vélizy II shopping center (Darty).

"The acquisition is expected to create the largest electrical goods retailer in the country with $8.84bn of combined sales."

Fnac group will also sell a commercial location in the Wagram avenue where a Darty store was planned to open.

The competition authority said in a statement: “The divestiture of these six stores to one or more retailers of electronic products will guarantee realistic choices to the consumer, capable of maintaining pricing and services conditions competitive at a local level.

“In order for them to be authorised, the authority will ensure that takeover prospects of one or several divested stores be a retailer of the same sector susceptible of exerting sufficient competitive pressure on the Fnac group in the concerned area.”

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The acquisition is expected to create the largest electrical goods retailer in the country with $8.84bn of combined sales, Reuters reported.

In April, Fnac made a final offer of 170 pence a share to buy Darty, valuing it at £900m ($1.1bn).

Earlier, Darty received an offer from Conforama, which was prepared to pay 38 pence per share to acquire the retailer in a deal worth £742m.

Steinhoff also offered to pay 125 pence a share in cash for Darty.