Tesco's proposed takeover of the Joyce’s supermarket group in Galway has been cleared by the Competition and Consumer Protection Commission (CCPC), subject to the provision of a number of legally binding commitments.
These include the sale of the Joyce’s outlet in the suburb of Oranmore, where there is a large Tesco outlet nearby, to a suitable purchaser.
"Tesco has also committed not to carry out any act which may have a significant adverse impact on the supermarket before its sale and, not attempt to acquire the business back for a period of time following its sale," the CCP said in a statement.
An independent monitoring trustee has been appointed to ensure there is compliance with the commitments.
Tesco said it will comply with the condition and will ensure that employees are supported during the transition.
The CCPC said that taking the commitments into account, it has determined that the proposed acquisition will not substantially lessen competition and can therefore proceed.
The CCPC launched a full probe of the proposed transaction in April amid concern it might lessen the number of competitors to Tesco in the Oranmore area.
"As we celebrate 25 years of Tesco in Ireland, the approval of this acquisition is an exciting opportunity to continue to grow our business for the future; bringing great value, quality and broad range of products and services to the customers and communities of Galway City and County," Natasha Adams, CEO, Tesco Ireland.
The takeover marks Tesco’s first significant investment for a portfolio of supermarkets in Ireland.
The Joyce's supermarkets will be rebranded and designed as Tesco stores during 2022 on a phased basis.
Patrick C Joyce started the family business in Headford in 1951 with a small grocery store and followed this with a travelling shop and then developed into a general supermarket.
Pat Joyce took over the business in 1988 and since then nine more supermarkets have been opened in Knocknacarra, Athenry, Tuam, Inverin, Ballybane, Fr Griffin Road, Doughiska, Oranmore and Oughterard.
The group employs over 500 people.