06 Nov 2009 —  Carrefour to Appeal Antitrust Ruling in Indonesia

Carrefour announced it is to challenge the decision announced this week by Indonesia’s Business Competition Supervisory Commission to cancel the acquisition of local chain Alfa Retailindo by the retailer in January 2008.

• The Commission claims that, as a result of this acquisition, Carrefour was holding a dominant position within Indonesia’s modern trade industry. It stated that the retailer took advantage of this new situation to put pressure on suppliers for lower price.
• The Commission ordered Carrefour to sell its stake in Alfa and pay a USD 2.6 million fine.
• Carrefour’s lawyer stated that the commission’s findings are baseless. “Alfa’s markets share is very small. There’s no way we can dominate the market by acquiring it.” He stated Carrefour will then challenge the decision under the South Jakarta District court.
• Carrefour acquired a 75% majority stake in Alfa Retailindo in January 2008 for close to EUR 50 million. Alfa operates 29 stores across Indonesia, including 13 in Jakarta and reported net sales of EUR 265 million in 2006.