Sandpiper submits new application to buy Costcutter

Friday 31 March 2017

Sandpiper has revised its application to acquire 16 Costcutter stores from JMart, over fears that it would reduce the competition in Island grocery stores.

The number of Costcutter stores in the acquisition proposal has been reduced to 13, excluding the St Ouen, St John and Green Island stores, following comments from the Channel Islands' Competition and Regulatory Authorities (CICRA).

CICRA said the proposed acquisition had the potential to harm consumer interests reducing competition in particular in island grocery store and advised that it was unlikely to succeed. 

Michael Byrne, CICRA chief executive, said: “We looked carefully at what this acquisition might mean for those who rely on these stores for their shopping needs and found there were risks consumers could be less well served if the transaction went through as originally intended. Sandpiper has now registered a new application excluding those stores from its proposal where CICRA identified concerns.”

Sandpiper withdrew their original transaction on 10 March, 2017 and CICRA will now consider the new application.