Medicover takes over CityFit, but UOKiK sets conditions. What will be the consequences?

Medicover has a conditional consent of the UOKiK to take over companies running Fitness CityFit and CityFit Blue clubs – UOKiK informed in a press release. The planned transaction is to consist in taking control of control over 16 companies from the CityFit Group by ABC Medicover Holdings.

Medicover has over 150 clubs under the brands: Just Gym, Well Fitness, McFit, Stellar, Platinium Fitness, Smart Gym, Premium Fitness & Gym. The CityFit Group owns over 20 sports and recreation facilities under the CityFit and CityFit Blue brands.

UOKiK said that, according to the current case -law, the President of UOKiK assumed that fitness clubs compete with each other in one city. Medicover and CityFit have clubs in the same 13 cities. In most of them, however, they meet with the competition of other entrepreneurs. It is different in Gliwice and Bielsko-Biała, where after the transaction the position of Medicover would be so strong that it would lead to a restriction of competition.

“Our analysis shows that the concentration would interfere with the competition in two cities. This would be unfavorable for clients of fitness clubs in Bielsko-Biała and Gliwice, could result in, for example, an increase in prices. At the same time, sales after one of the gyms in each of these cities will allow to maintain equal competition of entrepreneurs in local markets,” said Tomasz Chróstny, the president of UOK.

According to the imposed condition, Medicover must sell one of his own or belonging to the taken entrepreneur club in Bielsko-Biała and Gliwice.

The decision is not final. The applicant may appeal to the Court of Competition and Consumer Protection. (PAP Biznes)

MBI/ GOR/