Biznes Fakty
Medicover with conditional consent from the Office of Competition and Consumer Protection to take over companies operating CityFit and CityFit Blue fitness clubs
The Office of Competition and Consumer Protection revealed in a press statement that Medicover has received provisional approval to acquire the companies that manage the CityFit and CityFit Blue fitness clubs. The intended deal entails ABC Medicover Holdings gaining control over 16 companies from the CityFit group.
Medicover operates more than 150 clubs under various brands, including: Just Gym, Well Fitness, McFit, Stellar, Platinium Fitness, Smart Gym, Premium Fitness & Gym. The CityFit Group oversees over 20 sports and leisure facilities branded as CityFit and CityFit Blue.
Medicover acquires fitness clubs
The Office of Competition and Consumer Protection (UOKiK) noted that, based on existing legal precedents, the President of UOKiK determined that fitness clubs compete within the confines of a single city. Both Medicover and CityFit have locations in the same 13 cities. However, in most of these cities, they encounter competition from other business entities. The scenario differs in Gliwice and Bielsko-Biała, where following the acquisition, Medicover’s position could become sufficiently strong to inhibit competition.
„Our evaluation indicates that the concentration would negatively impact competition in two cities. This would not be favorable for fitness club clients in Bielsko-Biała and Gliwice, potentially leading to, for instance, price hikes. Simultaneously, the divestiture of one gym in each of these cities will help maintain fair competition among businesses in local markets,” stated Tomasz Chróstny, president of the Office of Competition and Consumer Protection, as quoted in the announcement.
Divestiture by one club
As per the imposed condition, Medicover is required to sell one club each, whether one of their own or one from the acquired entity, in Bielsko-Biała and Gliwice.
The decision is not conclusive. The applicant has the right to appeal to the Court of Competition and Consumer Protection.
We reached out to Medicover for their perspective. At the time of publication, we had not received a reply.
