A proposed Costcutter merger in Jersey has been rejected by the Channel Islands Competition Regulatory Authority (CICRA) in its first review.
The merger, which would see SandpiperCI acquire 16 Costcutter franchises, will now be subject to a second, more detailed assessment to address concerns it will have a negative impact on shoppers on the island.
Franchise retailer SandpiperCI wants to rebrand the J Mart-owned Costcutter sites as Iceland and Food Hall stores.
CICRA said although the vast majority of reviews were passed at the first stage, there are exceptions that require further review and this merger “might not be in consumers’ best interests”.
As the largest retailer in the Channel Islands, SandpiperCI operates 11 Food Halls, eight convenience stores, five forecourts, 16 Wine Warehouses, one bakery and four discount Pound Power stores.
“It is important we understand thoroughly the impact this particular sale would have on local people if approved,” said CICRA chief executive Michael Byrne.
“In particular we want to ensure the grocery market in Jersey works in the best interests of consumers and transactions such as this do not risk reducing value, choice and access to services. We will endeavour to reach a final decision within our administrative target of six months.”
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