The Autorité de la concurrence clears, subject to conditions, the acquisition of Distribution de Matériaux pour les Travaux Publics (Point P Travaux Publics) by Frans Bonhomme

On 18 October 2019, Frans Bonhomme notified the Autorité de la concurrence of its plan to acquire control of one of its competitors, Distribution de Matériaux pour les Travaux Publics (hereinafter “DMTP”), which operates the Point.P Travaux Publics chain of stores.

Parties to the transaction

Frans Bonhomme is active in the distribution of system solutions (materials for the construction of water, sanitation, rainwater systems, etc.) and pipes for public works and construction professionals through 380 sales outlets under the Frans Bonhomme brand.

DMTP, a subsidiary of Saint-Gobain, operates the Point.P Travaux Publics chain, which has 58 sales outlets in France. It offers construction and public works companies solutions in the areas of sanitation and rainwater management, roads, drinking water supply, power and telephone networks, landscaping, tools as well as slab and paving work.

Frans Bonhomme has made commitments to address competition issues identified in several catchment areas

The parties compete in the market to supply building materials as customers of the manufacturers of these products and in the trade in building materials for public works as suppliers to professionals.

While the transaction does not raise issues with regard to competition on the markets for procurement from suppliers, the transaction would strengthen the new entity's position in several local markets for the distribution of building materials for public works. These are the catchment areas of Point.P Travaux Publics outlets located in Onet-Le-Château, Quimper and Amiens.

In order to maintain competitive intensity in these areas, Frans Bonhomme undertook to divest itself of the following three outlets:

• the Point.P Travaux Publics store located in Onet-Le-Château;
• the Point.P Travaux Publics store located in Quimper;
• the Frans Bonhomme store located in Camon (Amiens catchment area).

The divestiture of these three sales outlets to one or more competitors cleared by the Autorité de la concurrence either eliminates the business overlap resulting from the acquisition in these three areas, or reduces the new entity's market share by preserving the competitive structure of the market as it existed before the acquisition.

These divestitures must be cleared by the Autorité, which will ensure that the buyers are independent of the new entity and able to stimulate competition. An independent divestiture trustee approved by the Autorité will ensure implementation of the commitments.

In view of the commitments entered into by Frans Bonhomme, the Autorité today cleared the transaction.

> See the full text of decision 19-DCC-221 of 27 November 2019