Austrian furniture retailer XXXLutz's German deal hit by EU antitrust investigation

EU Opens Antitrust Probe into XXXLutz’s Acquisition of German Peer Porta

By Foo Yun Chee

EU Investigation into XXXLutz’s Acquisition of Porta

BRUSSELS, Oct 12 (Reuters) - EU antitrust investigators opened a full-scale investigation into Austrian furniture retailer XXXLutz's proposed acquisition of German peer Porta on Monday, saying the deal may significantly impact competition in several EU countries, a move which could require XXXLutz to offer remedies to address their concerns. 

Details of the Acquisition

XXXLutz, whose brands include XXXLutz, Mömax, Roller, Braun, Home24 and Möbelix and also sells electronics and appliances in addition to furniture and household goods  announced the deal in January 2025. 

Concerns Raised by the European Commission

The European Commission, which is the EU competition enforcer, said its preliminary review of the deal signalled some concerns especially in the market for the retail sale of furniture in discount stores.

Impact on Competition

"Within these markets, the transaction may remove important competitive constraints between the companies, as they are among the few players in Germany, Czechia and Slovakia operating furniture retail store networks offering the full range of furniture," the Commission said in a statement. 

Effect on Manufacturers and Suppliers

It said manufacturers and suppliers in Germany, the Czech Republic, Slovakia and Poland may also be impacted by the deal due to XXXLutz's purchasing association GIGA International which gives the company significant purchasing power.

Decision Timeline

It set a February 25 deadline for its decision. 

Previous Antitrust Scrutiny

XXXLutz found itself in EU antitrust regulators' crosshairs in July this year which opened a separate investigation into whether it had implemented the deal without first securing their approval.  The company could face a hefty fine as much as 10% of its global annual turnover if found guilty of jumping the gun.

(Reporting by Foo Yun Chee, editing by Bart Meijer)