Bundeskartellamt clears Praktiker/Max Bahr merger subject to divestment obligation

The Bundeskartellamt has cleared the takeover of the Max Bahr DIY chain by Praktiker AG subject to the obligation to sell a total of four DIY stores to another independent DIY store operator.

Praktiker AG plans to take over a total of about 80 mostly large building supplies and DIY stores whose total domestic sales are in the upper three-digit million euro range. The concentration leads to overlaps in 39 relevant regional markets. Whereas in most cases the project has raised no concerns under merger control law, the concentration would have created dominant positions in four regional markets (Lüneburg, Rostock, Schwerin and Cottbus).

To dispel the Bundeskartellamt’s concerns the companies concerned have agreed to sell one DIY store in each of the regional markets concerned. This will lead to a considerable reduction of Praktiker’s and Max Bahr’s joint market share while at the same time allowing competitors to enter the market or expand their own market positions. The Bundeskartellamt could therefore clear the merger subject to the above obligation.