France’s Competition Authority Gives Green Light to Joint Venture

France’s Autorité de la concurrence has approved a deal allowing 167 Auchan supermarkets and hypermarkets to switch to Intermarché or Netto banners under a joint venture controlled by Intermarché and Auchan.

Source: s.yimg.com

After a referral from the European Commission, the Autorité de la concurrence found the transaction to be ‘unlikely to harm competition in the markets concerned, whether in the supply of everyday consumer goods in France or in the local retail distribution of food products.’

Key Findings and Assurances

The Autorité de la concurrence examined several key areas, including the impact of the banner change, the risk of coordination between the two retailers on prices or service quality, and the potential for economic dependence on Intermarché’s purchasing operations.

On sourcing, the regulator noted that the 167 stores already obtained 50% of their supplies through AURA, the Intermarché-Auchan purchasing alliance. It said the deal would not create or strengthen suppliers’ economic dependence on Intermarché’s purchasing operations.

In local food retail, the authority said the rebranding did not raise competition concerns because Intermarché and Netto’s combined market shares remained below 50% in every area examined.

The regulator also dismissed concerns that the transaction would facilitate coordination between the two groups. It cited their limited market power nationally and ‘several credible alternatives for suppliers,’ as well as structural differences between Auchan’s centrally managed network and Intermarché’s model of commercially autonomous independent retailers.

Joint Venture Aims to Improve Operational Performance and Consumers’ Purchasing Power

Auchan had presented the project in November 2025 as ‘an innovative cooperation model’ designed to improve operational performance and strengthen French consumers’ purchasing power.

The company said at the time that operating supermarkets under the Intermarché and Netto banners would combine ‘purchasing power, complementary formats and operational performance to benefit consumers’ purchasing power.’

ITM Entreprises, which operates Intermarché and Netto sister supermarket chains, is controlled by French retail cooperative Les Mousquetaires. Auchan runs hypermarkets, supermarkets, convenience stores, and online grocery services in France.