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European Commission - Press release
Mergers: Commission approves acquisition of internet retailer Redcoon by Media-Saturn
Brussels, 24 June 2011 - The European Commission has cleared under the EU Merger Regulation the proposed acquisition of German internet electrical goods retailer Redcoon by Media-Saturn, of the Metro AG group which also distributes electric and electronic appliances through the Media Markt and Saturn shops. After examining the operation, the Commission concluded that post-transaction the parties' market shares will remain moderate and that the merged entity will continue to face numerous competitors.
The Commission's market investigation focused on the impact of the proposed transaction on retail sales for electronics and domestic appliances, both through online sales and in "brick & mortar" shops, in particular in Austria, Germany, Italy, the Netherlands and Poland.
The Commission found that the market shares of the two companies will remain moderate regardless of the exact market definition and that the proposed transaction will only lead to a minimal increment to Media-Saturn's current market share. The merged entity will also continue to face numerous competitors.
The Commission therefore concluded that the proposed concentration would not significantly impede effective competition in the European Economic Area (EEA) 1 or any substantial part of it.
The transaction was notified to the Commission on 17 May 2011.
Companies and products
Media-Saturn-Holding GmbH is the holding company of Media-Saturn-Group, belonging to the Metro AG group of companies, which distributes electric and electronic appliances of all kinds at the retail level through Media Markt and Saturn in various countries. Media-Saturn distributes the majority of its products through "brick & mortar" shops.
Metro AG is a worldwide trading company which operates cash & carry stores, self-service hypermarkets and stores.
Redcoon GmbH is a retailer selling electrical goods mainly to end-consumers over the internet. Redcoon's portfolio also includes DIY products, musical instruments, sporting goods and toys. It is a pure online player and does not distribute its products through "brick & mortar" shops.
Merger control rules and procedures
The Commission, in 1989, was given the power to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the Merger Regulation). Its duty is to prevent concentrations that would significantly impede effective competition in the European Economic Area (EEA)1 or any substantial part of it.
The vast majority of mergers do not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has a total of 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II).
A non-confidential version of today's decision will be available at:
Amelia Torres (+32 2 295 46 29)
Marisa Gonzalez Iglesias (+32 2 295 19 25)
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