The competitor requests the Authority to reject the merger of Intersport and Sport 1 – E24

– We think it can be quite devastating. They will have a large number of stores, much more than anyone else, and in many places they will keep the local monopoly.

That’s what Gisle J. Daviknes, general manager of Stadion AS says. The company is an umbrella company for more than 100 sports stores across the country, many of them specialty stores for an activity or sport.

Daviknes has asked the Competition Authority not to approve the merger of Sport 1 and parts of the bankrupt state of Gresvig.

Sport 1 owner Bjørn Rune Gjelsten and former Gresvig owner Olav Nils Sunde in late February signed an agreement with the bankrupt state of Gresvig to buy a significant portion of the business for NOK 873 million.

The merger requires a green light from the Competition Authority.

Fear of concentration of power

Sunde and Gjelsten have planned to organize the new company, now called Ino Holding, under the Sport Holding joint venture.

Daviknes says concern that the new group will have too much influence on the sports industry has been compounded by the crown crisis.

– Today, there are many players who are breathing hard, and there is a clear danger of closings and bankruptcies for both the provider and the retail chain in the future.

The consequence of this will be further consolidation and concentration of power, says Daviknes.

– Therefore, we believe that the Competition Authority should intervene and stop a merger of Sport1 and Intersport under the same ownership.

NOK 5 billion

According to 2019 figures from the Norwegian Association of the Sports Industry, the Gresvig G-Sport, G-Max and Intersport chains had a market share of 29.1 percent, while Sport 1 accounted for 21.9 percent. hundred.

Its total turnover amounted to approximately NOK 6.85 billion.

However, the proposed merger will consist of a compressed version of the old Gresvig. Sunde and Gjelsten have planned to take over 48 of Gresvig’s 93 private stores, while 36 will be closed.

The last nine have not yet been decided.

According to the company, the new group will have a turnover of NOK 5 billion.

– Turnover is not lost

Stadium manager Gisle J. Daviknes responds to that figure. He thinks it is too low.

– It must be assumed that they have reached this reduction of 1.85 billion by subtracting sales to stores that close. But even if the stores are closed, that doesn’t mean this rotation has disappeared.

– What do you think would be more realistic?

– You shouldn’t speculate on that, but it’s obvious to expect most stores where they have more to close. Then only sales are moved to the neighboring store.

I will not comment

Board Chairman Petter Schouw-Hansen of Sport Holding’s parent company Ino Holding will not comment on the Daviknes game or explain how NOK 5 billion in billing is calculated.

Instead, it refers to the competition notice that Gjelsten and Sunde have delivered to the Competition Authority.

Here it says:

“The parties face strong competition in all market segments (…) Therefore, the business combination will not lead to any restriction of competition, neither in the sports equipment market as a whole nor in any niche From the market”.

And on more geographically defined markets:

“All stores face multiplayer competition locally. (…) In addition, all stores face strong competition from all online players. (…) Therefore, the business combination will not lead to limited competition in any local market »