The CNMC approves with commitments the purchase of Distrisur by the Logista group

Logista undertakes, among others, that Boyacá will not be present on the board of directors of Logista Regional for 3 years

MADRID, 19 Jun. (EUROPA PRESS) -

The National Commission of Markets and Competition (CNMC) has authorized in the second phase the acquisition of Distribuidora de Publicaciones del Sur (Distrisur) by Compañía de Distribución Integral de Publicaciones Logista (Logista Publicaciones).

The operation is subject to a series of commitments to maintain competition in the market and, in particular, with Distribuciones Generales Boyacá (Boyacá).

Logista Regional (a subsidiary of Logista Publicaciones that will group all of its regional magazine distribution activity) will acquire Boyacá's stake in Distrisur, while Boyacá will enter its shareholding with a minority stake.

The CNMC determined on November 23, 2022 the start of the second phase of the analysis of this concentration operation.

The wholesale distribution of periodicals Logista Regional and Distrisur operate in the market for the distribution of periodicals and, specifically, magazines. For its part, Boyacá also operates in these markets.

The CNMC clarifies that "they are markets with a high concentration and with significant entry barriers, derived from economies of scale and also from the decline derived from the decrease in printed publications."

The CNMC assures that this operation means strengthening and geographically expanding the shareholding link between Logista Publicaciones and Boyacá, "a fact that can alter the incentives to compete between them (especially in some regions, but also at the national level)."

Thus, "it could significantly affect the degree of competition in these markets, as there is only one other operator with a similar degree of implementation."

The CNMC assures that "the original terms of the acquisition also contemplated a preferential contracting of Logista Regional for the distribution of future publications that reinforced the anticompetitive risks of the operation."

For all these reasons, a series of commitments have been established. In the first place, Logista Publicaciones agrees that Boyacá resigns to appoint representatives on the board of directors of Logista Regional for a period of 3 years, a period that can be extended by the CNMC for an additional year.

In any case, Logista Regional will not share with Boyacá, nor will it receive from it, sensitive information from the point of view of competition law.

Additionally, and once the previous period has ended, the representatives appointed by Boyacá in the management body of Logista Regional will not be members of the board of directors of Boyacá. This second part of the commitment will also have a duration of 3 years, extendable by the CNMC for an additional year.

Secondly, Logista Publicaciones undertakes that the contracting of Logista Regional by itself or by Boyacá for the distribution of possible new editorial funds is carried out under market and non-discriminatory conditions. This second commitment has an indefinite duration.