Victory Seeks Antitrust Approval for Up to 30% Stake in Carrefour
Victory controlling shareholder Eyal Ravid seeks antitrust approval to acquire up to 30% of Carrefour shares ahead of a 400 million shekel IPO. The Movement for Quality Government filed an official objection, warning of reduced market competition and consumer harm.
Eyal Ravid, the controlling shareholder of Victory, is seeking approval from the Israel Competition Authority to acquire up to 30% of Carrefour's shares ahead of its upcoming public offering. While sources close to the IPO suggest he is unlikely to secure more than 10% during the initial offering, Ravid intends to purchase the additional stake from underwriters or complete the acquisition at a later stage.
Concurrently, the Movement for Quality Government has formally filed the first objection to the Competition Authority against the proposed share purchase. The movement argues that approving such a transaction raises significant competition concerns due to the high concentration of the Israeli food retail market, potentially creating a hazardous situation of cross-holdings between direct competitors, undermining market independence, and increasing risks for consumers.
Carrefour, controlled by Electra Consumer Products owned by the Zalkind brothers, plans to issue new shares in an equity offering of approximately 400 million shekels. As previously reported, Victory applied to the Competition Authority for permission to buy shares in the offering, reportedly aiming to build a strategic position for a potential future merger.
In its formal objection, the Movement for Quality Government notes that the six largest food retailers in Israel currently control 62% of the market share, with Victory and Carrefour jointly holding 9%. The organization warned that creating financial ties between rival networks or reducing the number of independent players could weaken price competition and ultimately harm consumers.
Citing historical precedents, the movement referenced Shufersal's 2005 acquisition of Club Market, which was approved by the antitrust authority during a corporate collapse but later saw violations of regulatory conditions regarding supplier relations. The organization emphasized that behavioral restrictions are insufficient to preserve market competition following structural changes. Eyal Ravid's office declined to comment on the matter.
