Antitrust Authority Continues Its Trend Of Stricter Punishment

The Israel Antitrust Authority (''IAA'') has announced its intention to impose a financial sanction in the sum of NIS 25,640,000 on Bitan Wines, due to its violation of the terms of the merger between Bitan Wines and the Mega supermarket chain.

In January 2016, the Mega supermarket chain entered a procedure freezing and, as a result, the majority of its assets were acquired by Bitan Wines. The General Director's approval for the merger was granted on the condition that Bitan Wines will sell branches in eight different localities where Mega and Bitan Wines have overlapping branches.

Despite the fact that the deadline for fulfilling the merger conditions has passed, Bitan Wines has only fulfilled its obligation in relation to the sale of branches in the vicinity of Herzliya. The branches that it was obligated to sell in all other localities have not yet been sold. Consequently, Bitan Wines violated the terms of the merger.