French competition authority gives the green light to the Auchan-Intermarché franchise deal

In France, 165 Auchan supermarkets are allowed to switch to competitor Intermarché under a franchise agreement. The competition authority granted approval for this on Monday.

No risk of distorting competition

Last November, Auchan Retail made a surprise announcement that it would operate its French supermarkets under the Intermarché and Netto brands, as the largest franchise partner of the Groupement Mousquetaires. As the franchisor, Intermarché would provide the stores with greater flexibility, improved performance, more value for customers, and more opportunities for employees, according to the group, which intends to continue focusing on the hypermarket format.

On Monday, the French Autorité de la Concurrence approved the transaction without any additional conditions. Half of the 165 stores are already supplied through Aura, the joint purchasing center of Intermarché and Auchan, and the stores’ local market shares do not exceed 50% in any of the regions examined, according to the competition authority, which therefore concludes that the notified transaction poses no risk of distorting competition.

The stores in question will be incorporated into A+Super, a new structure within Auchan Retail, which will operate as a franchisee of the Groupement Les Mousquetaires. The staff will make the transition starting October 1. From that date on, the first stores will also change their names, in a phased operation to be completed by May of next year.