The National Commission for Markets and Competition approved last Friday with commitments the merger between Druni and Arenal.
This final decision consisted of different phases for its approval. The CNMC has specified in its report that at first, after examining and analysing the operation, it identified and delimited the potential competition problems that could occur in certain areas if this operation were authorised without the commitments, which it has finally drafted and which must be complied with.
The regulatory body has detected that in Ponferrada there could be a monopoly situation in the market for the distribution of luxury perfumery and cosmetics products.
The regulatory body has detected that a monopoly situation could exist in Ponferrada in the market for the distribution of luxury perfumery and cosmetics products.
With the aim of eradicating possible risks for competition in the acquisition. The most important one, as stated by the CNMC, has been the divestiture of the Druni retail outlet in the municipality of Ponferrada in order to eliminate the overlap resulting from the operation and there will be no change in the previous structure of this market.
The new company agreed between Arenal and Druni will be jointly controlled by Modelo Continente Hipermercados and a percentage will also be left to the family that owns Druni.
Arenal, prior to signing its merger with Druni, managed to increase its sales figures by 21% and its profits soared by 34% in 2023. In the last financial year, the Galician perfume chain opened more than 70 new points of sale. Since the pandemic, Arenal has managed to boost its turnover by more than 90%.
Druni, for its part, grew by 35% in 2023 and achieved a profit of 16.8 million euros and sales of more than 570 million euros. It currently has 350 shops in Spain and is opening new points of sale in Spain.