In Romania, the Schwarz Group operates Kaufland and Lidl retail chains.
Schwarz Group committed to maintaining the current business model of the La Cocos chain, offering customers low and competitive prices in the local market where it operates, by capping the gross margin at the average level of the period, and by continuing its expansion policy while preserving the business format and operational and commercial independence. The gross margin level will be set to ensure minimum profitability, and any changes can only be implemented in objective situations, with the approval of the Competition Authority, given that an increase could lead to higher prices.
Additionally, the Schwarz Group pledges not to acquire smaller stores (retailers) with a turnover below EUR4 million in areas where it holds a market share above 40%, where such transactions do not need to be notified to the Competition Authority, and to inform the antitrust watchdog about any acquisition or lease of commercial spaces and any plans to open stores in those locations.
The proposed commitments aim to protect La Cocos exclusive suppliers by implementing a clear procedure outlining the rules for delisting suppliers within the La Cocos network, whether they sell food or non-food products.
Accordingly, the Schwarz Group commits to applying a procedure to La Cocos exclusive suppliers that establishes the conditions they must meet to avoid delisting, applicable for a period of two years from the completion of the transaction. The Group pledges not to delist or remove products from the network except under clearly defined conditions, which include legal requirements or cases where products become irrelevant in the market, with demand substantially decreasing.
The procedure also provides for partial delisting, with Supermarket La Cocoș required to maintain at least 80% of purchases from relevant suppliers for a period of two years.
Schwarz Group said it plans to buy 70% of La Cocos shares in a deal estimated at EUR100 million and subject to antitrust clearance.
La Cocos is owned by entrepreneur Iulian Nica, alongside the European Bank for Reconstruction and Development (EBRD), Morphosis Capital and CCEECAT Capital.