The Italian Competition Authority (“ICA”) authorised with conditions the acquisition of control of La Gardenia and Limoni by the CVC group, to which Profumerie Douglas belongs. This merger has led to the aggregation of the first and second market operators and the ICA imposed on the acquiring company that certain local points of sale for the luxury selective retailing of cosmetic products and fragrances where competitive issues were found, be transferred to third independent parties.

In particular, the ICA assessed the evidence on the overall functioning of the markets affected by the merger and concluded that it would lead to the establishment or strengthening of the dominant position of Profumerie Douglas in 15 local markets for the luxury selective retailing of cosmetic products and fragrances, thereby causing substantial and lasting harm to competition. In addition to the post-merger entity’s market shares, the ICA took into consideration the distance between Profumerie Douglas and the other competitors (multi-brand national chains, department store corners, local chains and independent perfumers), their characteristics, market power and competitive pressure.

Rome, 22 January 2018