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Die Übernahme von Denner durch Migros verstösst gegen das Kartellgesetz

Author

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  • Thomas VON UNGERN-STERNBERG
  • Mario JAMETTI

Abstract

We investigate whether it is likely that the Swiss competition authority (WEKO) will approve the acquisition of Denner (the number 3 retailer in Switzerland) by Migros (the number 1 retailer). We argue that the decisions made by the European competition authorities are helpful guidelines in this case. We find it likely that the merger will not be approved. Both concentration and barriers to entry in the Swiss retail market are already very high. The takeover of the "third force" by the market leader would eliminate effective competition, both from the perspective of clients and suppliers. It is conceivable that the WEKO might not be willing to fully apply the law, and merely ask Migros to sell a port of Denner's retail network to a foreign competitor.

Suggested Citation

  • Thomas VON UNGERN-STERNBERG & Mario JAMETTI, 2007. "Die Übernahme von Denner durch Migros verstösst gegen das Kartellgesetz," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 07.02, Université de Lausanne, Faculté des HEC, DEEP.
  • Handle: RePEc:lau:crdeep:07.02
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    Keywords

    merger; retail; market concentration; barriers to entry;

    JEL classification:

    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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