French competition authority clears Fnac’s deal to acquire Darty
France's competition authority has approved Groupe Fnac’s proposed deal to acquire electronics and appliance retailer Darty.
As part of its approval, the French competition authority has asked Fnac to sell six stores in Paris and the Parisian region in order to maintain a healthy competition in the market of retail distribution of electronic products.
The stores considered for divestment include the Belleville boulevard (Darty), the Italie 2 (Darty) and Beaugrenelle (Fnac) shopping centers, the Saint Ouen avenue (Darty) and the Vélizy II shopping center (Darty).
Fnac group will also sell a commercial location in the Wagram avenue where a Darty store was planned to open.
In April, Fnac declared its final offer of 170 pence a share to acquire Darty, valuing it at about £900m ($1.1bn).
The competition authority said in a statement: “The divestiture of these six stores to one or more retailers of electronic products will guarantee realistic choices to the consumer, capable of maintaining pricing and services conditions competitive at a local level.”
The acquisition is expected to create largest electrical goods retailer in the country with $8.84bn of combined sales, reported Reuters.
Earlier, Darty received bidding from Conforama which offered 38 pence per share in a deal that valued Darty's at £742m.
Steinhoff also offered to pay 125 pence a share in cash for Darty.
Darty operates 400 stores in three European countries.
Image: Fnac will acquire electronics and appliance retailer Darty. Photo: Courtesy of Manuel de Sousa/Wikipedia.