The island’s Commission for the Protection of Competition (CPC) has given the green light for shareholding changes in HOB House of Beauty Ltd to take place.
Specifically, CPC has approved the takeover of 50% of shares owned by CTC in HOB House of Beauty Ltd to NMM Investments Ltd which belongs to the Michaelides company.
Insider reported on November 16, 2019 that CTC Group continued moves to divest assets and was planning to get rid of its 50% holding in the established cosmetics and beauty products firm.
NMM also owns MPM Imports Ltd which already controls the remaining 50% equity in HOB House of Beauty Ltd – a key player in the Cyprus market.
CPC had examined whether there is an affected horizontal market, that is, whether the threshold of share possession by a participating firm, is exceeded. Therefore, the Commission proceeded and evaluated the combined market shares of participating firms in:
1) wholesale luxury cosmetics market and sub-markets
2) wholesale market for cosmetics and related sub-markets
The Commission concluded that the combined shares in the aforementioned parallel markets in Cyprus do not create an issue of market manipulation, since according to the data, the concentration of activities of the parties concerned does not lead to a combined market share of 15 % or more.
Therefore, CPC points out that there is no affected market at the horizontal level between the parties concerned.
The highest combined market share is, according to the CPC, in the luxury and wholesale sub-markets. And that in view of all of the above, the Commission unanimously decided not to object to the proposed concentration of shares and to declare it compatible with the operation of market competition.