Eurocash takeover of PDA conditionally approved

The President of the Office of Competition and Consumer Protection (UOKiK) in Poland has approved the acquisition of Poland Spirits Distribution (PDA) by consumer goods-distributor Eurocash, a Polish press report stated on Thursday. Eurocash had signed a preliminary agreement to acquire PD in December 2015. However, there were objections to the transaction which centred on complaints of restriction of competition for highly-potent (above 18 percent) alcoholic beverages on local wholesale markets. Now that these objections have been resolved, UOKiK reported, the acquisition will be carried out. The two companies’ areas of business already overlap somewhat. Eurocash is engaged in wholesale and retail sales of food and beverage products, including in specialized wholesalers of alcoholic beverages, and PDA is one of the leading wholesalers of alcoholic beverages. As a result of the new deal, Eurocash will acquire seven wholesalers, each located in different cities. With this acquisition, Eurocash gains control over a company that had revenues in 2015 of PLN 268 million.