TAIPEI (Taiwan News) — French supermarket giant Carrefour received conditional approval Wednesday (Dec. 9) from the government’s Fair Trade Commission (FTC) to take control of the Wellcome supermarket chain in Taiwan.
Carrefour announced in June it would pay €97 million (US$117 million) to take over all 199 Wellcome and 25 JASONS Market Place stores in Taiwan by the end of the year.
The FTC said in its ruling that the merger would provide consumers with lower prices and more convenience but nevertheless voiced concern for the interests of small and medium-sized suppliers and for the role played by Uni-President Enterprises Corporation, which owns 40 percent of Carrefour Taiwan shares, CNA reported.
Conditions stipulated by the FTC include safeguards for the small suppliers for a period of three years from the date of the takeover. In addition, Uni-President may not use its position as a shareholder to receive any unfair benefits.
Reports on both issues will need to be submitted to the FTC before April 1 every year for three years, according to Wednesday’s ruling.
At present, Carrefour runs 137 outlets in the country, including 69 smaller convenience stores, CNA reported. The Wellcome and Jasons brand names will disappear after the takeover.