Tesco buy-out of Joyce’s supermarkets gets all clear
THE Competition and Consumer Protection Commission (CCPC) has cleared, subject to a number of legally binding commitments, the proposed acquisition by Tesco Ireland Limited of the Headford-based Joyce’s group of supermarkets.
The CCPC’s clearance of the proposed acquisition would see Tesco purchase Joyce’s stores in the Galway area but it will be required to sell off the Joyce’s Oranmore supermarket to a suitable purchaser.
Joyce’s currently employs 500 people and operates supermarkets in Tuam, Headford, Athenry, Oranmore, Inverin, Oughterard and Galway city.
Following notification to the CCPC in December 2021, the CCPC carried out a preliminary investigation of the proposed acquisition and concluded that a full investigation was required to establish if the proposed transaction could lead to a substantial lessening of competition in the State.
The CCPC’s full investigation, which began in April, identified potential competition concerns relating to the provision of goods in the grocery retail sector in the Co. Galway area. These concerns related to the number of alternative effective competitor supermarkets that would be available to consumers in the Oranmore area following the proposed acquisition.
To address these concerns, Tesco committed to divesting Joyce’s supermarket in Oranmore as a going concern to a suitable purchaser, who will be subject to CCPC approval.
In a statement Tesco Ireland has welcomed the decision. It says, working with the Joyce family, it will move forward to complete the transaction and thereafter begin the process to rebrand and redesign the Joyce’s Supermarkets as Tesco stores on a phased basis.