Competition investigation threatens Countrywide deal

Countrywide Farmers’ deal to sell 48 of its retail stores to Mole Valley hangs is facing major scrutiny after an investigation found it could push up prices or lower quality in 45 areas.

The Competition and Markets Authority is seeking a response from Mole Valley to address its concerns about competition before it progresses its investigation.

Evesham-based Countrywide had agreed the deal in October and had planned to complete last month. However the agreement, which would see 48 sites and 750 staff transfer to Mole Valley, has been held up by the investigation.

Mole Valley and Countrywide Farmers each run country stores, operating a total of 99 premises primarily located across the South and West of England.

These typically each have a bulk agricultural products supply business – through which they sell large-scale supplies of agricultural products, such as fertiliser or fencing – and a retail business, through which they sell a wide range of products including animal feed, clothing, pet food and gardening tools.

Rachel Merelie, acting executive director of mergers and markets, said: “It’s our job to make sure that people continue to have enough choice, get fair prices and good quality products after companies merge.

“Mole Valley and Countrywide Farmers are two of the biggest operators of country stores, and so it’s important that their customers can find good deals when they need to buy these kinds of products.”

The CMA believes there are competition concerns in the supply of agricultural products in bulk in 45 local areas while 25 places would be affected by weaker competition in the retail sector.

Mole Valley now has the opportunity to offer ways to address these competition concerns. If Mole Valley does not make such an offer, or if any undertakings do not sufficiently address the CMA’s concerns, the merger will be referred for in-depth investigation through a “phase 2” inquiry.