Slovakia protests Carrefour and Tesco swap

Hopes of a quick changeover were dampened for Carrefour and Tesco, the world's second and third largest food retailers respectively, as the EU postponed the decision of its competition inquiry until December 23.

Tesco had originally intended to drive further into Central and Eastern Europe (CEE) by taking over 15 Carrefour stores in the Czech Republic and Slovakia as part of a global shop-swap deal.

And French-owned Carrefour plans to take six Tesco stores and two sites in Taiwan for €132 million.

The Taiwan deal has been given the green light by the Taiwanese Trade Commission that believes the swap will not contravene the country's Fair Trade Act.

Now approval must be given for the CEE arrangement. And as the Slovak national competition authority has asked to rule on the deal, the EU's decision hangs in the balance.

But the two retail giants assert the delay is normal practice.

"They have extended the date for a couple of weeks, as the Slovakian competition authority has asked for further inquiries - but this is quite common,"​ a Tesco spokesperson told FoodandDrinkEurope.com.​

Tesco, which now claims £1 in every £5 spent on groceries in the UK, has come to see CEE expansion as a new challenge and a way of securing future growth in food sales.

But suppliers in the Czech Republic complained to the government earlier this year about the fees they were forced to pay retailers to get their products on the shelves, and critics suggest Tesco's expansion into the region may only confound the issue.

But the big food retail players are still expressing interest in the region as their Western food retail markets have matured.

Tesco has announced an ambitious expansion plan throughout the whole region during the coming months, while world number one Wal-Mart has also stated its interest in expanding across Eastern Europe.