ISRAEL: Supersol abandons Rami Levi buyout bid after government decision on Blue Square's plans
Israel's Supersol supermarket chain has cancelled negotiations to control the Rami Levi Marketing food chain, following the recent decision by the government's Anti-Cartel director Dror Shtrum blocking Blue Square's purchase of the Haviv Supermarket discount chain.
A report in Ma'ariv notes that Supersol intended to purchase 51% of the family-owned Rami Levi company, which operates food stores in the Jerusalem region.
Last week, Shtrum ruled against a merger between Blue Square and Haviv. Shtrum cited two factors in the decision, which marked the first time a government agency has intervened in the sector: concerns over the ability of large chains to exert pressure on suppliers; and the fact that large chains control over 50% of the local food market yet "competition in a free-market economy is vital."
By Aaron Priel, just-food.com correspondent
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