Leon’s acquisition of The Brick not anti-competitive, Bureau says

The Bureau announced that it does not intend to challenge the acquisition of The Brick Ltd. by Leon’s Furniture Limited. The Bureau’s investigation revealed that while both parties are incredibly close rivals, particularly in the retailing of furniture and mattresses, the transaction was unlikely to substantially lessen or prevent competition since effective national and regional competitors will remain in the market.

Leon’s and The Brick compete in selling retail furniture, mattresses, and various electronic products. They also compete in the wholesaling of appliances to commercial customers through their respective affiliates. The Bureau’s investigation focused on whether the proposed acquisition would create or enhance the parties’ market power in the retailing of furniture and mattresses. The Bureau examined the sales data at the transaction level of the parties’ respective stores. The Bureau undertook a cross-sectional analysis in order to measure competitive loss that may arise from the proposed acquisition. The Bureau also compared the parties’ prices in areas where they compete against each other with prices in areas where they do not compete. The Bureau concluded that the price effects observed were not material. The Bureau had limited concerns with potential barriers to entry and the remaining competition, post-acquisition.

For further details, read the Bureau’s press release.