15 November 2021, Budapest – The Hungarian Competition Authority (GVH) authorised the French acquisition of ownership in a Hungarian electronic product wholesaler. The investigation established that the transaction would not significantly reduce competition on the relevant market and it could not be expected to have any negative effects either.

The GVH launched an investigation in the summer with respect to the merger of Újfa-Vill Kereskedelmi Kft., engaged in the wholesale of electronic products, and the Hungarian subsidiary of the French Sonepar Group. This is due to the fact that based on the preliminary data, the GVH had not been able to estimate the future effects of the transaction on the construction sector, which uses these products and is currently struggling with large price hikes.

The assessment of the GVH covered all important levels of the value chain. In the course of the proceeding, the Authority held consultations with dominant market players, several competitors and suppliers, purchasing cooperatives, and associations of undertakings as well. The GVH obtained data from almost 30 different market players.

The results of the investigation showed that the price increases observed on the market are not unique to the Hungarian market; the increased prices are perceived in an international context as well and their primary cause can be attributed to the higher prices of raw materials (copper, aluminium, steel, plastic) on the global market. Following a thorough analysis of the relevant market, the GVH established that the merger would not significantly reduce competition thereon and no negative effects could be expected. Therefore, the Authority approved the transaction in question.

The official registration number of the case is: VJ/30/2021.

GVH Press Office

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