Chile’s antitrust regulator has recommended that department store group SACI Falabella should sell its smaller grocery outlets before going ahead with its planned merger with supermarket operator Distribucion y Servicios (D&S).

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In a document containing its recommendations regarding the deal, Chile’s Anti-Trust Tribunal said Falabella selling its San Francisco and Tottus chains would be the only way to avoid “significantly restricting supermarket competition”.

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