Israel: Antitrust Authority approves Mega-Yeinot Bittan merger

As expected, the Israel Antitrust Authority today approved the merger of the Yeinot Bittan and Mega supermarket chains, but set conditions: the dissolution of Yeinot Bittan’s fruits and vegetables marketing partnership with Bikurei Hasade Daromom in the Bikurei Bittan company and the sale of branches in eight areas.

The decision was taken after the Antitrust Authority’s economic analysis gave rise to two main concerns about competition: in food retailing (supermarkets) in certain areas of Israel and in wholesale purchases of fruits and vegetables. The Antitrust Authority concluded that without these restrictions, competition would be affected, and therefore decided that the merger could go ahead only after the dissolution of the fruits and vegetables partnership and the sale of branches.

When the merger takes place, it will make the Yeinot Bittan chain, owned by Nurit and Nahum Bittan, Israel’s second largest supermarket chain, with 190 branches and an annual sales volume of NIS 5 billion.

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