The Competition and Consumer Protection Commission has cleared the acquisition of 4 Aces Wholesale by BWG Foods, subject to a number of binding commitments.

4 Aces Wholesale, an independent wholesaler and a member of the Gala Retail Group, reported turnover of €58m in 2016 and is owned by Liam Linden (55%) and Pascal O’Brien (45%). The company operates from depots in Portlaoise, Navan and Clonmel.

Consideration for the deal was not disclosed. 4 Aces Wholesale Ltd reported cash generated from operations of €1.6m in 2016 and the company's net worth at year-end was €11.4m.  Industry insiders have speculated on a deal value in the region of €14m.

The CCPC identified a potential competition concern in relation to access to competitively sensitive information, arising from 4 Aces' relationship with Stonehouse Marketing and Gala Retail Services.

To address these concerns, BWG agreed to submit commitments to the CCPC, which included:
• A divestment commitment
• A firewall commitment
• A confidentiality commitment.

The divestment commitment will ensure that BWG divests itself fully of 4 Aces’ shareholding in Stonehouse. The confidentiality and firewall commitments are intended to prevent the exchange of commercially sensitive information post-transaction.

The CCPC said these commitments would be  effective in addressing its competition concerns. The Commission's detailed analysis of the competition issues will be issued at a later date.