Blue Square, Israel’s second largest food chain, has requested the approval of Antitrust Director Ronit Kan to acquire a number of independent supermarket chains for 200m shekels (US$42.5m).
The acquisition targets include Yad Yitzhak Food Wholesalers and Super Rama. In all, Blue Square plans to add 10-20 large supermarkets, each with an annual turnover of about US$12.8m, reports Globes.
The report says that an acquisition of this kind would have been unimaginable before Supersol acquired Clubmarket Marketing Chains.
Former Antitrust Authority director Dror Strum’s approval of that takeover set a precedent that will make it harder to forbid similar takeovers, especially much smaller ones. “Blue Square wants to exploit this momentum to acquire independent supermarket chains, thereby reducing the gap created by Supersol’s acquisition of Clubmarket.