Annabella Acquires 87 Stores as Mega Image Meets Merger Conditions

The Romanian Competition Council has given preliminary approval for Annabella to buy the stores, which Mega Image must sell to complete its acquisition of Profi Romania. The move will see Annabella expand into six new regions where it currently has no presence.

Mega Image faced a simple choice: sell stores or lose the Profi deal. When the Competition Council approved Mega Image’s takeover of Profi Romania, it came with strict conditions. The combined company would have too much control in 44 localities where both chains currently operate.

Competition officials worried this concentration would reduce consumer choice and potentially drive up prices. Their solution? Force Mega Image to divest stores in these overlapping areas.

The 87 stores include everything needed to keep operating – retail space, equipment, staff, inventory, customer databases, and brand goodwill. This ensures the locations remain competitive rather than simply closing down.

Annabella’s Ambitious Expansion Plans

For Annabella, this represents a massive growth opportunity. The Romanian-owned retailer currently operates 118 stores across seven counties – Argeș, Brașov, Dâmbovița, Giurgiu, Ialomița, Olt, and Vâlcea.

The acquisition will take Annabella into six completely new markets: Cluj, Bihor, Timiș, Bacău, Vrancea, and Constanța. That’s significant geographic expansion for a company that has built its business in central and southern Romania.

What This Means for Romanian Retail

This transaction highlights how competition law shapes retail expansion across Europe. Large acquisitions rarely go through without some form of store divestiture, especially in food retail, where local market concentration matters most.

For consumers, the goal is maintaining choice. Rather than seeing two competing chains merge into one dominant player in certain areas, shoppers will still have options between Mega Image and Annabella.

For the retail sector, it creates a more balanced competitive environment. Annabella gets instant access to new markets without the time and cost of building from scratch. Mega Image completes its Profi acquisition. And competition remains healthy in areas where consolidation might have reduced options.

The Broader European Context

Romania’s approach mirrors competition enforcement across the EU, where authorities regularly require store sales as merger conditions. Similar patterns have played out in markets from Poland to Portugal when large retail chains seek to combine operations.

The preliminary approval suggests the deal will proceed smoothly. Final authorisation depends on completing the transaction details, but the Competition Council has already signalled its support for Annabella as the buyer.

This type of regulatory intervention keeps retail markets competitive while still allowing consolidation that can bring efficiency benefits. For Annabella, it offers a rare chance to double its geographic footprint almost overnight.

The Romanian retail sector continues evolving as local players like Annabella compete alongside international chains. This acquisition positions Annabella as a stronger national competitor while maintaining the market competition that benefits Romanian consumers.

Source: Business Review