“We are taking over Real together with all employees. We believe by implementing our commercial policy we will win new customers. We will keep jobs, and by increasing the turnover, we will have the opportunity to create new jobs,” Espasa told ZF only a few days after the signing of a EUR1.1 billion transaction involving 91 stores in four countries in the region.

On Tuesday, Auchan’s network in Romania reached 11 stores and the company now employs around 4,700 people, after finalizing a new store in Bucharest’s Crangasi district.

This year the company’s turnover could be close to EUR500 million. The French group will buy 20 stores from Real, which have around 5,400 employees. The transaction will create a group with sales of around EUR1.1 billion and over 10,000 employees.

Competition Council analysis

Before the acquisition becomes effective, the French group first has to submit an application to the Competition Council and is reluctant to say when it will put its logo on the 20 Real stores.

The process could take more than a year, as was the case in the latest major transaction in local retail. Lidl’s rebranding of the Plus stores was finalized 16 months after takeover.

Could the Competition Council impose certain conditions before giving the green light to the transaction, such as removing some stores from “the list of acquisitions” because of competition-related problems?

Espasa said Auchan will await the approvals of the antitrust authorities. “We cannot answer in their place, but we don’t anticipate major difficulties,” he said.

Auchan’s priority, after the transaction is approved, will be to receive and integrate all Real collaborators and organize the integration of systems, logistics and commercial policies, he added.

What prompted Auchan to make the acquisition?

Real’s strong suits are the company’ experience in terms of fresh produce, private labels, management of permanent product ranges, as well as logistics and operating efficiency, said Espasa This is a good opportunity for us to keep the pool of Romanian suppliers built by Real and develop it in synergy with Auchan.”

Auchan will continue to expand, with the stores in Brasov and Bucharest’s Drumul Taberei district being on the priority list. The projects will be started in the first few months of next year. The Drumul Taberei location will also accommodate Auchan’s new headquarters.

“The Drumul Taberei headquarters will bring together the services of the two companies, all teams of central services in one place,” Espasa said.

(English version by Daniela Stoican)

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