Competition watchdog to examine Joyce’s buy-out

Tesco’s takeover of ten Joyce’s supermarkets across the city and county has come under scrutiny from the competition watchdog.

The Competition and Consumer Protection Commission confirmed during the week that it’s conducting a further investigation after launching its initial probe last December as the takeover was announced.

That, it said, was on foot of fears that the move could “lead to a substantial lessening of competition”.

Tesco acquired the ten Joyce’s supermarkets in an estimated €20 million deal late last year – including four outlets in and around Galway City as well as locations in Tuam, Athenry, Headford, Inverin and Oranmore, collectively employing about 500 people.

Tesco announced at the time that, subject to approval, all of the supermarkets would be rebranded and designed as Tesco stores throughout 2022 on a phased basis.

According to the supermarket giant, Joyce’s’ employees wouldbe welcomed as colleagues of Tesco Ireland where they will be supported to continue and grow their careers at by the group.

At the time, Tesco Ireland CEO Kari Daniels said the deal was part of the company’s strategic ambition to bring its quality and value to more customers.

“I am really pleased that we’ve reached agreement with Joyce’s Supermarkets and look forward to bringing Tesco to more communities in Galway in the year ahead,” he said.

“This agreement provides a great platform for us to bring our value, quality and range of products to more customers, and to bring our grocery home shopping service to more locations in the west of Ireland.”

However, it seems that the overall plan has hit a major stumbling block with the competitions watchdog now revisiting the overall transaction.

It appears the competition watchdog is reopening a deeper probe into the planned acquisition by Tesco of the Joyce’s Supermarkets chain.

The Competition and Consumer Protection Commission its latest investigation last week.

“Following an extended preliminary investigation, the CCPC has determined that a full investigation is required in order to establish if the proposed transaction could lead to a substantial lessening of competition in the State,” said the watchdog.

“The CCPC will publish its Phase 1 determination no later than 60 working days after the date of the determination and after allowing the parties the opportunity to request that confidential information be removed from the published version,” it added.

The UK multiple is buying all ten outlets that are owned and operated by the Joyce family. The business has been in the Joyce family for 70 years.

Tesco has said that all the stores will be rebranded as Tesco outlets next year and will include services such as online shopping, click and collect, clothing and homeware products.