THE sale of 13 CI Newsagents outlets to Spar has been approved by the Jersey Competition Regulatory Authority, sub-ject to Spar maintaining uniform prices in all its Island stores for the next three years.

In considering the application, the JCRA concluded that there was a risk of a ‘substantial lessening of competition’ in two respects as a result of the sale.

The authority was concerned that in a central part of the Island Spar would effectively be the only convenience store operator.

Hence the condition that prices should be uniform Islandwide.

This will mean that any low pricing policy in areas of intense competition such as urban St Helier will have to be mirrored in areas where Spar has what amounts to a local monopoly.

There was also concern about a ‘no-compete’ clause in the sale agreement.

The authority has said that this must be limited to a period of a year after the acquisition is finalised.