Polrem Ltd, one of the seven companies originally involved in a supermarket joint venture deal, has decided to withdraw from the project, the Office for Competition within the Malta Competition and Consumer Affairs Authority said.

The company runs Lasco Supermarket, in Żejtun.

In their original application Co-op Trading Co. Ltd, Polrem Ltd, S. Borg & Sons Ltd, Tower Supermarkets Complex Ltd, Valyou Pendergardens Operations Ltd, Belleview Supermarkets Co. Ltd and Valyou Supermarket Ltd had said the idea of their joining forces is to create a dynamic new player in the Maltese grocery retail market.

The seven companies run Park Towers Supermarket, Valyou Supermarket, Tower Supermarket, Trolees Supermarket and Lasco Supermarket in eight localities.

The Office for Competition concluded in August there appeared to be no threat of competition being substantially negatively affected as a result of the proposed joint venture, clearing the way for the deal to go ahead.

However, the competition watchdog was informed by the other applicants a few days ago that Polrem Ltd no longer wished to form part of the joint venture entity and would be withdrawing as a party to the concentration. It did not elaborate.

The Office for Competition said Polrem Ltd will continue to operate Lasco independently of other undertakings involved in this concentration as a competitor. It noted that the withdrawal of the supermarket operator from the concentration will “further alleviate any competition concerns the Office for Competition may have had when analysing the proposed concentration”.