Under the EU Merger Regulation, the European Commission has approved Dufry’s acquisition of Word Duty Free Group.
The commission decided that the acquisition wouldn’t raise concerns about competition, citing both companies’ moderate combined market positions, the presence of strong competitors and pricing constraints that airport operators impose on travel retail companies.
The transaction was announced in March. Acquiring WDFG helps to expand Dufry’s presence in North America. The Swiss company previously had purchased Hudson Group and Nuance Group.
With the acquisition of WDFG, Dufry’s global market share of airport retail is expected to be about 24 percent.
“The combined entity will have a very attractive concession portfolio, one of the best in terms of duration, rent to be paid and risk-diversification strategy,” Dufry CEO Julian Diaz said when the deal was initially announced in March.
