The Office for Consumer Protection and Competition (UOKiK) has blocked the purchase of Merlin internet book retailers by Empik, one of Poland’s largest high street stores.

The decision comes six months after the announcement that Empik was to buy a 60 percent stake in Merlin, although the deal was referred to the consumer watchdog soon after.

UOKiK undertook a survey among 1,100 competitors in the book and music retail market, including online retailers, with the watchdog concluding that the merger would lead to the monopolisation of the market segment.

The Empik Media&Fashion group has voiced its astonishment at the decision. In a statement to Polish Radio, the company wrote that it had carried out thorough research and risk analysis before embarking on the investment.

However, UOKiK’s decision is not yet legally binding, but may prompt an appeal to the courts. It is the sixth such negative takeover decision given by the watchdog since 2004. (jb)

Source: IAR