Super Sol’s (NYSE: SSLTF.PK; TASE: SAE) acquisition of Clubmarket Marketing Chains has been closed. Signing is expected today, following discussions with Clubmarket’s workers, their approval of the deal, and a final meeting with Antitrust Authority director general Dror Strum. The merged retail chain will begin operating this week on Thursday, September 1, according to the precise outline prepared by trustees Adv. Shlomo Ness and Gabi Trablissi CPA, and approved by Tel Aviv District Court Judge Varda Alshech.
Talks between Strum, Super-Sol’s management, and the Clubmarket trustees ended in agreement early this morning. Strum withdrew some of his initial demands, and Super-Sol accepted his remaining requirements. Last night’s discussions were probably influenced by a feeling that emerged yesterday that Super-Sol wanted to withdraw from the deal.
All of Clubmarket’s operations managers will meet with the chain’s trustees and Super-Sol CEO Effie Rosenhause this morning. Inventory taking will begin tomorrow.
The final wording, most of which was agreed last night, will be settled in a meeting with Strum this morning. Strum is requiring the merged chain to sell thirteen branches, mostly in the north, having a significant local effect on competition. These branches will be sold within 2-6 months, while the proceeds from the sale will help finance the creditors’ arrangement. The trustees will probably carry out the sale.
Strum also imposed restriction on several other matters. These are designed to preserve competition with independent chains.
The trustees have already begun negotiating with Super-Sol over the amount to be deducted from Super-Sol’s current NIS 825 million bid for the thirteen branches to be sold. Agreement is expected today.
By law, violation by either party of the terms approved by the Antitrust Authority constitutes a crime.
Published by Globes [online] - www.globes.co.il - on August 30, 2005