The Georgian Competition and Consumer Agency (GCCA) has declared compatible with the competitive environment two concentrations implemented at the wholesale and retail levels of the food and beverage market, concerning the acquisition by ITN LLC of 20% stakes in each of Horeca Delivery LLC and Gastronom Georgia LLC. In view of the specific nature of the target undertakings' activities, the relevant product markets were defined, respectively, as the wholesale and distribution level and the retail level of the food and beverage market.
With respect to the concentration implemented through the acquisition of a 20% stake in Horeca Delivery LLC, the Agency's analysis of the relevant market established that the total volume of the food and beverage wholesale and distribution market amounted to GEL 16,238,629,534 in 2024, with a Herfindahl–Hirschman Index (HHI) of 84.73 recorded across 3,400 active undertakings. The HHI fell significantly below the maximum threshold for an unconcentrated market (1,250), and the target undertaking held a negligible market share. Furthermore, the parties to the concentration were not active on the same or on vertically related markets, the transaction therefore produced no change in the prevailing level of market concentration.
With respect to the concentration implemented through the acquisition of a 20% stake in Gastronom Georgia LLC, the analysis established that the total volume of the food and beverage retail market amounted to GEL 12,144,287,137 in 2024, with an HHI of 799.96 across 5,771 active undertakings. The relevant market was likewise characterised by a low level of concentration, with the HHI falling significantly below the applicable threshold. The target undertaking held a negligible market share and the transaction produced no change in the level of market concentration.
On the basis of the foregoing, the Agency concludes that the notified concentrations do not significantly impede effective competition on the relevant markets and are accordingly declared compatible with the competitive environment.
In 2026, the GCCA has granted approval to a total of nine concentrations.
In accordance with Georgian legislation, concentration is subject to notification to the Agency if the aggregate (total) joint income of its participants on the territory of Georgia, exceeds 20 million GEL and the joint income of at least two persons participating in the concentration exceeds 5 million GEL for the previous financial year. In case of bypassing the Competition Agency subject to the mandatory notification, before the Agency reviews the notification or despite the negative conclusion, the person with the obligation to submit the notification shall be fined.
