New major player in Denmark

The green light for the merger was given by the Danish competition authority on 25 April. The new company, which has yet to be named, is expected to go on stream at the turn of the year.
Available from Raad & Daad is a great choice of power tools for DIYers and professionals.
The merger was proposed in mid-March, but the magnitude of the project meant that the competition authority was compelled by law not only to investigate possible repercussions on the competition but also to invite comments from the trade in general, as the new company would become a major and dominant player in both the DIY and building materials markets.
The two cooperative-based chains Ditas (Raad & Daad, Byggekram and Proffen) and Dendek function as buying and marketing organisations for their owner-members, 87 from Ditas and 47 from Dendek. Altogether last year the two DIY chains had some 300 stores in Denmark, which generated sales of approximately DKK 5.5 bn (741 mio euro).
Byggekram stores carry a comprehensive programme of hand tools and machinery.
The fact that neither of the two cooperative chains owns any stores was considered a plus by the competition authority, which has approved the merger providing that the new company adheres to four conditions. The competition authority wants to be sure that Dendek/Ditas does not in any way incite or encourage manufacturers or importers to enter into exclusive distribution contracts. All future contracts must also state that suppliers or importers can supply other DIY chains as well and have the right to deliver directly to building sites without having to invoice through the Dendek/Ditas head office or pay a commission to the new company. This rather unusual condition should be seen in the light of the fact that the new company will become the major player in a market that is not exactly renowned for a high level of competition. What obviously also worries the competition authority is that Dendek/Ditas and Danske Trælast together will own about 90 per cent of the market - and that Danske Trælast will in this way turn into the second biggest player in this market.
Secondly, Ditas and Dendek have agreed that members/owners must not be tied to trade with only a designated number of suppliers. The competition authority emphasises that members should be free to trade with whomever they want.
Byggekram offers everything for the garden, including motorised equipment.
The competition authority's third stipulation states that Dendek/Ditas…