Agency Report –
The German online retailer Zalando has been authorized to take over its competitor About You, the European Commission announced on Wednesday.
The European Union’s executive branch has allowed the merger as it “would not raise competition concerns, given its limited impact on competition in the markets where the companies are active,” it said.
Despite the takeover “a large number of alternatives will remain available to consumers and brands,” it added.
Last December, Zalando had announced it made a takeover bid for its rival About You. The Berlin-based online retailer was offering €6.50 ($7.60) per About You share, totalling at around €1.2 billion.
With this merger, one of Zalando’s chief executives, Robert Gentz, aims to cover a larger share of the European online market for fashion and lifestyle.
The combined company aims to increase sales and gross merchandise volume by an average of 5% to 10% per year by 2028.
This brings the double-digit percentage growth that Zalando was once known for closer again. However, growth rates from previous peaks such as the coronavirus pandemic are still a long way off.
